Three Things (11/25)

Comcast reshapes media empire

Corporate shuffle … Comcast (CMCSA) announced plans to spin off its cable TV networks into a new company, tentatively called SpinCo. The spinoff will include MSNBC, CNBC, USA, Syfy, Oxygen, and the Golf Channel, marking a strategic pivot as Comcast doubles down on broadband and streaming services.

This shift underscores the mounting challenges for traditional cable TV, as both viewership and revenue continue to decline. For MSNBC, it presents a pivotal moment. The network, long dependent on NBC’s reporting resources while establishing its niche with opinion-driven programming, now faces a critical choice: either invest in developing its own newsroom or double down on its commentary-focused identity.

TV Use by Platform

From a financial standpoint, Comcast’s strategy could position the company to pursue mergers or acquisitions more easily, especially as the market shifts to a streaming-first focus—much like Netflix and Disney are doing. Comcast’s stock has held steady over the past three years, with broadband services and hits like Olympic coverage driving modest revenue growth. However, declining video subscribers and fierce competition in streaming have put pressure on margins. Even so, Comcast stands out with a gross profit margin of 68.14% and a return on equity of 17.18%, outperforming peers like Charter Communications (CHTR) and AT&T (T).

As SpinCo’s launch nears, analysts debate its potential. While some see it as a “well-funded startup” with room for acquisitions, others note the challenges of shedding assets tied to a shrinking cable ecosystem.

Gap is back

Retail revival … Gap Inc. (GAP) surprised Wall Street this quarter, posting earnings of $0.72 per share against $0.58 expected, with revenue climbing to $3.83 billion. Despite weather disruptions and hurricanes, the company raised its fiscal 2024 guidance, forecasting 1.5%–2% sales growth, signaling a strong holiday season ahead.

Under CEO Richard Dickson, Gap has prioritized reinvigorating its flagship brands—Old Navy, Athleta, Banana Republic, and Gap—through strategic marketing and targeted product upgrades. Dickson's turnaround strategy includes leveraging celebrity campaigns, nostalgic messaging, and operational discipline to recapture cultural relevance.

On the earnings call, Dickson highlighted Athleta’s 5% comparable sales growth, led by revamped product lines and effective TikTok-driven marketing, and Gap’s denim-forward campaigns featuring Troye Sivan, which boosted its 3% comp growth. Meanwhile, Old Navy, despite weather challenges, gained market share in activewear—a booming $70 billion category.

Gap's strategy echoes broader trends in retail. Brands like Abercrombie & Fitch (ANF) and American Eagle (AEO) are winning back younger consumers by aligning with trends and delivering compelling customer experiences. Gap shares rose 13% post-earnings, marking a 100% increase year-over-year.

Gen Z’s Thanksgiving table crutch

Holiday helper … This Thanksgiving, family dinners might get a little less awkward, thanks to Shyla, the latest AI assistant from Soul Machines. Designed to help Gen Z navigate delicate conversations, Shyla provides personalized strategies and a safe space to rehearse talking points.

A recent survey by Soul Machines highlighted why such a tool might be invaluable. Among ~700 Gen Z respondents, 40% dread political debates, while 34% worry about toxic relatives. Interestingly, 41% would rather hand-wash every dish than face questions about their future. Despite these anxieties, Soul Machines says that 40% of Gen Z-ers are open to AI tools like Shyla for communication support, signaling growing trust in technology for emotional assistance.

Shyla’s features include two-way interaction with real-time feedback, personalized advice tailored to individual concerns, and 24/7 availability. It’s part of a broader trend where AI assists with social challenges. For example, Replika provides emotional support as an “AI friend,” and Bumble’s (BMBL) AI tools improve dating interactions.

Psychologically, AI assistants like Shyla offer users a nonjudgmental outlet, promoting confidence in tricky situations. However, experts warn against overdependence, which could stifle natural communication development.

One more thing: With consumers shifting away from fast food due to high prices, McDonald’s (MCD) is launching a new value menu to re-establish its affordability. Meanwhile, just in time for the holidays, a new coffee table book just dropped chronicling McDonald’s eccentric menu items from around the world.

Disclosures:

Advisory services are offered by Titan Global Capital Management USA LLC (“Titan”), an SEC registered investment adviser. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. Newsletters provided by Titan reflect the opinions of only the authors who are associated persons of Titan and do not reflect the views of Titan, or any of its subsidiaries or affiliates. They are meant for educational and informational purposes only, are not intended to serve as a recommendation to buy or sell any security and are not an offer to buy or sell a security. They are also not research reports and are not intended to serve as the basis for any investment decision. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. Any third-party information provided therein does not reflect the views of Titan or any of its subsidiaries or affiliates. All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. Any rewards or free trials offered through Titan's client referral program are subject to full program terms & conditions.

Titan newsletters are curated digests of business news stories delivered daily. Titan newsletters’ goals are to make business and financial news accessible to all. The Titan newsletter team has editorial independence. Authority over all news decisions that appear in Titan newsletters, including what news we cover, our tone, and any accompanying media, lies with the Titan news team. Titan newsletter editors conduct daily research through a variety of primary (e.g., press releases, financial reports, public statements, economic data, social media accounts, interviews, etc.), and secondary sources (e.g., Fortune, The Wall Street Journal, The New York Times, Bloomberg, CNBC, TechCrunch, Jalopnik, Business Insider, Fox Business, etc.). The editors then determine the stories to be featured, covering a mix of headline news as well as less reported, yet relevant stories. Titan can’t cover everything, but the Titan newsletters aim to deliver a well-rounded serving of news. Titan newsletters make every attempt to report the facts fairly and accurately and provide “Takeaways” based on our understanding of the trends, our business experiences, and our personal opinions. We deliver the crucial information and our unique perspective so you can assess the news critically. Titan newsletters may contain forward-looking statements, which reflect the author’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Smart Cash is offered by Titan as one of its RIA product offerings. Titan's Smart Cash strives for tax optimization; after-tax yields are estimates, and actual outcomes may vary. Yields are subject to market conditions, will fluctuate, and are not a guarantee or forecast of future earnings. While Titan can provide general tax information and guidance, any information provided should not be taken as tax advice as Titan is not a tax professional. Consult a tax professional for personalized tax advice. View Smart Cash risks and disclosures at titan.com/smart-cash- disclosures.

Various Registered Investment Company products (or “Third Party Funds”) are offered by third-party fund families and investment companies on the platform as one of many potential investment options available to Titan’s clients, that may or may not be recommended based on an individual client’s investment objectives and risk tolerance. Certain Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. The Third Party Funds that are available on the platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund. Please review the Third Party Fund’s prospectus, available on www.titan.com, in its entirety for a full list of risks associated with investing in the interval fund before making any investment decision.

Investments with exposure to crypto assets are only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns, as they still carry inherent risk associated with cryptocurrencies. You are solely responsible for evaluating the merits and risks associated with the use of any information, materials, content, user content, or third party content provided before making any decisions based on such content.

If there are substantive errors when published, corrections will appear in the following day’s material or within a business day of discovery of the error. When Titan or the author of a newsletter owns stock in a company mentioned, we’ll disclose it at the bottom of our newsletter.