Jan 17, 2017|
David Kretzmann (The Motley Fool, ETSY, ATVI) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Time for stock talk here on the financial exchange and we are joined by David craftsmen from the Motley Fool. David thank you very much for joining us. Thanks for me at all David let's talk first about antsy this is the company that there and I have have been talking about for the last years ago. And the increased competition that they've faced. From companies like Amazon that are trying to build similar marketplaces but the stock price for Etsy has actually done pretty well it's almost doubled since the start. Of 2016 now where do you see this company go aren't going to be able to be a long term player. Or are they just an acquisition candidate. Well yeah obviously at the had a rough by PO. And when he hit it but I think this is an online retailer that you're that day in and here's why it. And online platform to buy and sell homemade vintage an old trick up mindful items both. Are items that you're not going to and a bond to quietly when you go to Amazon you're trying to get the map produced you know cheap item. With that he really want back customizable. Really personalized items and right now it he has one point seven million active sellers when he said the million active fires and forty million items listed on a platform. That compared to 400000 items listed on in the bond and made platform which is. That at the competitor that wants last year I think at the it's really carving its own niche in the e-commerce category. In terms of the the platform for sellers of goods Amazon vs antsy. Is the payout structure different does that incentivized people more to go at it and Amazon. What was at the they they have a marketplace revenue component though that you'll take it 3.5 percent cut of every transaction. What's interesting about at you know at half. The seller on it the only elder item but at the and the people we sell on more than one platform are typically just going to craft fairs that be Kurt Kurt Billick that are really going on. Amazon or eBay or anywhere other than it being crap bears thinking panicked the at the at the crack there moving. On line and the majority of those dollars are women there their women do on there as you work from home. But the very different category that at these targeting and they've actually wants the news. Segment of the business with stellar services and things like web or payment and shipping solutions. So to really support these very unique category. Odd burger. So here's a question for I know that a lot of the sellers on NCR women to win any data on the demographics for buyers as to the male female breakdown. I don't know the exact. Breakdown there but I I think it is pretty evenly split I know it you know pert Leno from anecdotal. But evident in my part no I did and doing more and more of my holiday special occasion shopping on that team based on the company's growth. Management expecting when he perspective when he 5% annualized sales growth over that three year. Think warmer people are gravitating at the of what management really want is to get people may repeat purchases and so are they going to be moving that direction. Very good notes turn over to another tech company this one on the software side in particular. One of the titans of the video game industry it actually has a special place in my heart the first stock ever owned and that's Activision Blizzard can you talk a little bit about where you see this one go. You know yeah like you that Activision Blizzard is one of the titans and video games they they're behind franchises like all of the eighty World of Warcraft. And candy crisis for those mobile gamers out there. What I like about Activision Blizzard is that the the very well run company they have them amazing franchises. They're predicting over two billion dollars in pre cast well every year this is a very cash rich business. But what I especially like it is that management is taking for future growth they've they've launched in these sports division they they have the stated goal of becoming the ESPN at east port so. The competitive video gaming that Brit thing. They haven't Libyan TV production media that are trying to bring these videogame franchises. Q the big screen that silver screen they have violators academy that just premiere on Netflix last year got renewed for a second season. Dedicating crush games show coming out on B yet the call of duty cinematic universe is in the work. They have that segment and then they also are bridge in mobile game through their individual activists and inflicted pain so. They they have a very strong foundation with those hit franchises and it like this that they're taking for future growth but one that I have my radar. So here's a question for you one of the major sources of revenue for them. Historically has been World of Warcraft with which does charge. A monthly or annual fee for all of the users. Don't those subscribers peaked around twelve and a half million. Back in that old nine to eleven range. But it's dwindled now down to around five million he continues. To dwindle disappointed they have anything in the works to try to replace that revenue. Well yep the blizzard segment of Activision Blizzard just came out wit over watch last spring and that that game has done very well I believe. I forget that that apple now but it's been attend the million registered users on a broad and it the fact that. A blizzard franchise has gone that mark that the very quickly growing franchise has been endorsed by. People like you I'm not and other key players who really loved the game though. That's the first major launch for blizzards in World of Warcraft and so far the reduction over the past nine months or so has been. Unbelievable though you're deadly thing in the company take that you. Continue with existing franchises like work crafting ought to be but also being done very promising fix that with new franchises like overwrought. Surrogate David thank you very much for joining us. David craftsman from the Motley Fool the two companies that we are talking about here. At sea with the ticker ET as why Activision Blizzard with the ticker ATV. IE either you guys buy anything on Etsy. I do I served bind like he sent us are buying gifts on exit here in there and they're just such well thought out and what kind of stuff. So bought I signed my parents' house to hang out on the hang out on the street for their that their house the Mike in Armstrong family house. I Don Imus. A story about one of those actually. So I I have a friend who Dade they just got married right and they have this sign and doctors say the name of friend but they have this sign. The Scion is a misspelled. Do you think grammar on its wrong there's an apostrophe for their name when it shouldn't be because it's like it's supposed to be you know the whole name insulate our family. So there's an apostrophe where there should in the end it's pretty much just done in sharply. On a white board. In someone paid I asked the mom likes or what have you get this through it all and we gave to Watson nearly. They got it on Etsy and they spent a hundred dollars I'm like hi so what's that a hundred dollars on that. That's a quick return so. I have had nothing but good experience of a house about. For my uncle who's mostly based custom made PX my wedding bands from X that's pretty cool there you go.