TSX:BBTV.DB - Post by User
Comment by
misterwurston Aug 20, 2021 11:04am
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Post# 33739660
RE:RE:RE:RE:BBTV has tonnes of upside from here, says Scotia Capital
RE:RE:RE:RE:BBTV has tonnes of upside from here, says Scotia CapitalIMO, this is one of those stocks where "good" earnings will likely not do much for the share price. The reason is the staying power of the revenue is questionable. Revenue is backed by weak contracts (they expire in short order and need to be renewed) and the revenue is completely dependent on external creators.
Revenue growth is dependent on their ability to sign up more suckers to their "service".
Again, the company provides very little value to the creators, especially in the long term. As the creator gets big enough they have the scale to just go it on their own anyway.
So BBTV will cater to the middle grey area of mildly successful creators who will inevitably wither away to nothing or grow into something huge. Both lead to BBTV losing the revenue.
So the long term growth is a falacy. The revenue may go up fo a while but the rate of revenue growth will eventually plateau, and in the future there will be decline quarters. When a decline quarter hits, the stock will tank (expect a 40% to 50% haircut that day).