Trades at a 35% discount to its primary competitor despite superior underlying growth in viewership. 24x Forward P/E may seem expensive, but its under monetized and the industry is growing rapidly.
Like this comment if you want to see ALTAYCAP stream stock ideas as a cute anime girl from now on. I want a music video on Japanese Net-nets. (In all seriousness, this post was awesome, thank you).
Hololive / Cover collaboration with Dodgers went really well. So many people showed up! Line for Hololive merch at the stadium was the longest ever seen in 20+ years according to arena staffers. (Dodgers collab'd with other major brands like Hello Kitty before too). See tweet for some highlights
Before I watched the videos, I was thinking this will turn into another kpop/jpop craze and sure enough it's pretty much already there.
I maybe a not so old fart that tends to stay away from these things but kpop seems more popular among the western world. Have you looked into Korean competitors? I can't imagine they're far behind if they are at all.
Great read! Definately going to have to look into this one.
Try watching for a few minutes in the live link to see the streams in real time. Singing is only like 10% of the content. Most of the time they just do regular live streaming content!
The comparison to Kpop makes sense which is why I compared the biz to the kpop talent management companies. I think this biz is better though as Cover owns the IP entirely.
Surprisingly no Korean competitors in the English market. Not sure how the domestic Korean market is shaping up, but internationally it's basically COVER + independents and that's it.
Thanks!! I try to keep it short and sweet, but this is a unique industry/biz. This is a good sized position for me too, so it warranted a bit longer write up!
My friend and I have been fans of Hololive since 2020. The way this industry has grown is astonishing. Just want to comment on a few things since Altay covered the company so well.
1. Unlike most talent agency, Hololive has excellent reputation among fans. That’s rare and should protect the most important asset, which is fan loyalty in the long run. Eventually the IP will not be so different from anime characters, being recognizable even to non-fans (that’s my wish).
2. I remember watching a Sword Art Online movie about a virtual pop anime star and thought it was crazy, but Vtuber happened and I changed my mind!
3. The merch segment is due for a major overhaul. They haven’t really started selling apparel, which will really drive revenue and brand awareness compared to acrylic things or trading cards.
4. My friend and I stayed till almost midnight during the Dodgers event. I stayed to chat with fellow fans and gained more confidence in the fan community. My friend said he spent over $5000 on Hololive things in the last three years, which I can confirm. I’m sure there are thousands like him in the US and even more in Japan. In the future there will be more in US, Europe, Asia, and Americas.
5. I get why China doesn’t have big market potential given its climate, but still think Korea will have something similar in the future (though Kpop popularity may somewhat stunt that growth). Taiwan is big on Hololive too.
Cover's market cap discount with Anycolor is now gone. It trades at a premium (and rightfully so!). Has been on a tear lately. Morgan Stanley initiated the name with overweight rating and a high target price. They also revised up 1H estimates.
"Cover also invests more heavily in their business, with ¥1.6 billion in 'tools, furniture, and fixtures' on their balance sheet compared to Anycolor's ¥77 million"
Is it really a good sign that a tech company invests billions in tools and property?
They invested over ¥2B JPY into their state of the art motion capture/recording studio. Most of that was for the equipment. A tech company needs equipment too, yes. It's relatively capital light, but being willing to put up the money to maintain your technological edge with the best hardware is important. Better revenue share terms are an example of them willing to invest more into their talents as well. They have some tech elements for sure, but this is talent agency / media company with some tech elements more than a standalone tech company.
Nah. That looks like a virtual band. Not an agency like Cover which does much more than music. There are several big virtual bands/singers. Vtuber ones happen to be among the biggest, but these aren't competitors. Only competitors are other vtuber agencies like nijisanji, vspo, phase connect, vshojo, and many smaller groups
Like this comment if you want to see ALTAYCAP stream stock ideas as a cute anime girl from now on. I want a music video on Japanese Net-nets. (In all seriousness, this post was awesome, thank you).
Hololive / Cover collaboration with Dodgers went really well. So many people showed up! Line for Hololive merch at the stadium was the longest ever seen in 20+ years according to arena staffers. (Dodgers collab'd with other major brands like Hello Kitty before too). See tweet for some highlights
https://x.com/AltayCapital/status/1809476475386749207
Before I watched the videos, I was thinking this will turn into another kpop/jpop craze and sure enough it's pretty much already there.
I maybe a not so old fart that tends to stay away from these things but kpop seems more popular among the western world. Have you looked into Korean competitors? I can't imagine they're far behind if they are at all.
Great read! Definately going to have to look into this one.
Try watching for a few minutes in the live link to see the streams in real time. Singing is only like 10% of the content. Most of the time they just do regular live streaming content!
The comparison to Kpop makes sense which is why I compared the biz to the kpop talent management companies. I think this biz is better though as Cover owns the IP entirely.
Surprisingly no Korean competitors in the English market. Not sure how the domestic Korean market is shaping up, but internationally it's basically COVER + independents and that's it.
Your short pitches are great, but Mannnnnn I love your long posts. I read everything, pls keep doing them
Thanks!! I try to keep it short and sweet, but this is a unique industry/biz. This is a good sized position for me too, so it warranted a bit longer write up!
Great writeup! Been in this one for almost a year already, hopefully it rerates soon.
Many ppl dont realize but its INSANE how popular the Holoive lineup is
My friend and I have been fans of Hololive since 2020. The way this industry has grown is astonishing. Just want to comment on a few things since Altay covered the company so well.
1. Unlike most talent agency, Hololive has excellent reputation among fans. That’s rare and should protect the most important asset, which is fan loyalty in the long run. Eventually the IP will not be so different from anime characters, being recognizable even to non-fans (that’s my wish).
2. I remember watching a Sword Art Online movie about a virtual pop anime star and thought it was crazy, but Vtuber happened and I changed my mind!
3. The merch segment is due for a major overhaul. They haven’t really started selling apparel, which will really drive revenue and brand awareness compared to acrylic things or trading cards.
4. My friend and I stayed till almost midnight during the Dodgers event. I stayed to chat with fellow fans and gained more confidence in the fan community. My friend said he spent over $5000 on Hololive things in the last three years, which I can confirm. I’m sure there are thousands like him in the US and even more in Japan. In the future there will be more in US, Europe, Asia, and Americas.
5. I get why China doesn’t have big market potential given its climate, but still think Korea will have something similar in the future (though Kpop popularity may somewhat stunt that growth). Taiwan is big on Hololive too.
Cover went from 35% discount to Anycolor's market cap to almost 30% premium now.
Cover's market cap discount with Anycolor is now gone. It trades at a premium (and rightfully so!). Has been on a tear lately. Morgan Stanley initiated the name with overweight rating and a high target price. They also revised up 1H estimates.
Sharing this clip on Oct 21st may have marked the bottom.. https://x.com/AltayCapital/status/1848154505181094221
Cover's CEO is loved by the community. Short clip shows how much people respect+cheer the CEO. Definitelt a good thing for a media company!
https://x.com/AltayCapital/status/1809884075446149439
"Cover also invests more heavily in their business, with ¥1.6 billion in 'tools, furniture, and fixtures' on their balance sheet compared to Anycolor's ¥77 million"
Is it really a good sign that a tech company invests billions in tools and property?
They invested over ¥2B JPY into their state of the art motion capture/recording studio. Most of that was for the equipment. A tech company needs equipment too, yes. It's relatively capital light, but being willing to put up the money to maintain your technological edge with the best hardware is important. Better revenue share terms are an example of them willing to invest more into their talents as well. They have some tech elements for sure, but this is talent agency / media company with some tech elements more than a standalone tech company.
Isn’t this their Korean competitor?
https://en.m.wikipedia.org/wiki/Plave_(band)
Nah. That looks like a virtual band. Not an agency like Cover which does much more than music. There are several big virtual bands/singers. Vtuber ones happen to be among the biggest, but these aren't competitors. Only competitors are other vtuber agencies like nijisanji, vspo, phase connect, vshojo, and many smaller groups