Fly Charts: Shadow Bank Expansion and Amazon’s Health-Care Impact

Good morning! This is Fly Charts, the daily charts-only newsletter from Gadfly; sign up here. From Warren Buffett’s money problem to Uber capitulation, here are four charts that tell you what you need to know in business today.

Looming

Amazon is worth $200 billion more than the country’s five largest insurers and three largest pharmacy benefit managers — which will shortly be consolidated into five total companies.

Source: Bloomberg


Time to Spend

Berkshire Hathaway already has more cash than Warren Buffett knows what to do with, and a potential sale of USG may
add to the problem.

Source: Bloomberg


Risk Off

Wall Street keeps getting gifts from the Trump administration. The most recent present is a provision that will allow shadow banks to double their leverage.

Source: Bloomberg


The War Is Over

Ride-sharing is a winner-take-all business that Uber was losing in Southeast Asia. Its decision to sell its operations in the region to Grab should not be a surprise, and a capitulation in India
may be next.

Source: Grab, citing surveys by TNS conducted during June and July 2017


And don’t miss Nir Kaissar on Facebook’s predicament: “If Facebook’s historical financials are any guide, a mere 13 percent decline in the number of users — which would leave it with the same number it had at the end of 2016 — would translate into a 23 percent decline in ad revenue per user and a 33 percent decline in revenue. Earnings, in turn, would drop by 43 percent and its P/E ratio would spike to 45. If that were to happen, Facebook’s stock would have to decline by 65 percent to reach that reasonable P/E ratio of 15.5. It would take more than a few defections to bring down Facebook, but investors should bear in mind that the same isn’t necessarily true of its stock.”

 

 

 

 

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

To contact the author of this story:
Max Nisen in New York at mnisen@bloomberg.net

To contact the editor responsible for this story:
Mark Gongloff at mgongloff1@bloomberg.net

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