DIS - The Walt Disney Company
142.14 -0.43 (-0.30%)
After hours: 7:54PM EDT
| Previous Close | 144.30 |
| Open | 144.60 |
| Bid | 142.05 x 900 |
| Ask | 142.10 x 1200 |
| Day's Range | 142.37 - 144.68 |
| 52 Week Range | 100.35 - 145.43 |
| Volume | 5,096,387 |
| Avg. Volume | 9,897,796 |
| Market Cap | 256.583B |
| Beta (3Y Monthly) | 0.70 |
| PE Ratio (TTM) | 15.95 |
| EPS (TTM) | 8.94 |
| Earnings Date | Aug 6, 2019 |
| Forward Dividend & Yield | 1.76 (1.22%) |
| Ex-Dividend Date | 2019-07-05 |
| 1y Target Est | 151.65 |
- Yahoo Finance•5 hours ago
Netflix's 2Q global paid subscriber additions miss expectations
Netflix reported second-quarter earnings results after market close Wednesday.
- Engadget•13 hours ago
Spotify has the Disney section you’ve always wanted
Disney classics like The Lion King or Mulan are known for their iconicsoundtracks, and now it's easier than ever to find them in one place
- Investor's Business Daily•44 minutes ago
Dow Jones Futures: Netflix Dives On Subscriber Miss As IBM, eBay Eye Buy Zones
Dow Jones futures: Netflix dived late after subscriber growth badly missed views. IBM stock and eBay stock signaled possible moves into buy zones on earnings.
- Bloomberg•1 hour ago
Netflix Plunges After Biggest Stumble Since DVD-by-Mail Era
(Bloomberg) -- Netflix Inc. shocked investors by reporting a drop in U.S. customers and much slower growth overseas, raising fears that the streaming giant is losing momentum just as competitors prepare to pounce.The shares plunged as much as 13% to $314 in late trading after Netflix reported the loss of 130,000 customers in the U.S. -- the result of higher prices and a weak slate of TV shows. It signed up 2.8 million subscribers internationally in the period, roughly half what the company predicted.“Netflix has a difficult road ahead, with looming competition and the removal of popular content,” said EMarketer Inc. analyst Eric Haggstrom. But a stronger lineup of new shows in the current quarter could help attract former subscribers, he said.The quarter represents the biggest black eye for Netflix since 2011, when the company split its DVD-by-mail business from its streaming business. That move raised prices for its customers, and resulted in the loss of more than 800,000 subscribers in the U.S. The company had planned to call the DVD service Qwikster, but it backpedaled on the plan after investors and customers scoffed at the idea.Netflix said the miss is a one-time blip rather than a long-term problem. The second quarter has typically been its weakest time of year: The company missed its forecast during the period in three of the past four years.Netflix looks to add 7 million subscribers in the current quarter, thanks in part to the return of top shows “Stranger Things” and “Orange Is the New Black.”“Our position is excellent,” Chief Executive Officer Reed Hastings said during a videoconference call Wednesday. “We’re building amazing capacity for content. Our product has never been in better shape.”Heavy SpendingFor now, the second-quarter shortfall is renewing investor concern about the company’s heavy program spending and low profitability. Netflix shelled out more than $3 billion on programming in the quarter and another $600 million to market its shows. The company spent $594 million more than it took in and will need to raise money to fund programming.Investors had been forgiving about the spending and the debt -- so long as customers grew at record rates. But the loss of subscribers in the U.S. was the first since the Qwikster debacle, and it suggests Netflix may be running into price resistance or the limits of the addressable domestic market. The company has forecast it can reach as much as 90 million customers in the U.S., compared with 60.1 million currently.Overseas SlowdownInternational results flagged too, with the company missing its own forecast of 4.7 million new subscribers. Europe, Latin America and Asia have been the primary drivers of Netflix’s customer acquisition in recent years, and growth must be sustained if the company is to justify its high valuation.Netflix is introducing a cheaper, mobile-only package in India to attract customers in a big market with price-sensitive customers.Analysts expect the company to have a blockbuster second half because of a heavy release schedule that includes a new season of “The Crown” and movies by directors Martin Scorsese and Michael Bay. Even after the slowdown last quarter, Netflix still thinks it can have its best year of customer growth in 2019.But competition is coming. Walt Disney Co. and Apple Inc. plan to introduce streaming services this year, while offerings from Comcast Corp. and AT&T Inc. arrive in 2020. Those services may not steal users from Netflix, but they will make future growth harder, according to Michael Pachter, an analyst with Wedbush Securities.Just a Preview?“We saw a preview of next year with this quarter,” Pachter said in an interview with Bloomberg Television. “Next year, they’ll have a couple quarters where they’ll lose subscribers.”Another challenge: Competitors are taking back rights to programs that have been popular on Netflix, including “Friends” and “The Office,” to use for their own services. That will force Netflix to rely even more on its original productions.Those efforts have largely been successful. Its shows just earned 117 nominations for the 2019 Emmy awards. But reruns of old shows still constitute the majority of viewing.The slowdown in users overshadowed the company’s quarterly financial results. Earnings for the second quarter fell to 60 cents a share, but beat analysts’ estimates of 56 cents. Sales grew 26% to $4.92 billion, compared with projections of $4.93 billion.The stock had been up 35% for the year at the close of regular trading, nearly double the gain of the S&P 500. The decline spread to related stocks such as Roku Inc., which makes set-top boxes that deliver the streaming service. Its shares fell as much as 3.6% after hours.(Updates with CEO’s comment in seventh paragraph.)To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- MarketWatch•7 hours ago
Disney heiress ‘livid’ after going to one of her family’s theme parks undercover
Abigail Disney said distressed workers told her about “foraging for food in other people’s garbage.”
- Motley Fool•7 hours ago
Netflix Is Losing Its Most Popular Show in 2021
The news was expected, but that doesn't make it easier to digest.
- Business Wire•9 hours ago
Disney Parks, Experiences and Products Reveals Plans for D23 Expo, Aug. 23-25, 2019
Guests will discover an immersive pavilion, entertaining presentations, and all-new merchandise.
- Bloomberg•9 hours ago
Netflix Earnings Will Show Whether Price Hikes Are Paying Off
(Bloomberg) -- Netflix Inc.’s earnings should help answer a key question for the streaming giant: whether customers are willing to pay more in an increasingly competitive market.After boosting prices in markets around the world, the company will deliver its second-quarter results on Wednesday afternoon. Analysts don’t expect much growth at home -- they’re predicting a mere 309,240 subscriber additions in the U.S. on average -- but the hope is that the increases and more users overseas will let Netflix sustain the expansion investors have come to expect.“Recent price increases in multiple countries should result in revenue acceleration starting this quarter,” Citigroup Inc. analyst Mark May said in a research note.Wall Street is projecting revenue of $4.93 billion for the period, up 26%. Analysts also will be closely watching the growth in average revenue per user, international profitability, domestic streaming contribution margins and user engagement.Netflix is the dominant paid video streaming service, but it has reason to shore up its position right now. Walt Disney Co., AT&T Inc.’s WarnerMedia and Comcast Corp.’s NBCUniversal are all racing to deliver their own online services, ushering in a new era of intense competition.Against that backdrop, Netflix is building its presence overseas. The company is expected to report the addition of 4.75 million subscribers internationally in the second quarter, according to analyst data compiled by Bloomberg.Shares in the company have risen 36% this year, nearly double the gain of the S&P 500. But it’s still unclear how many customers globally are willing to pay for its product. Greg Peters, the company’s chief product officer, has hinted at the need for a lower-priced subscription tier for users with less disposable income.Read more: The ‘Stranger Things’ hunt for a billion-dollar franchiseSunTrust analyst Matthew Thornton views investor sentiment as neutral-to-cautious heading into earnings, particularly with the stock down as much as 1.2% intraday. But Netflix’s June content slate should lift some spirits as the bank has seen increased web searches for original series like “When They See Us” and “Black Mirror,” Thornton told clients in a note.Things should get more interesting for Netflix in the second half. On the plus side, the Los Gatos, California-based company will get a boost from new seasons of “Stranger Things” and “Orange Is the New Black.” Earlier this month, “Stranger Things” got off to a record start, with 40 million household accounts watching in the first four days of the new season.But Disney’s highly anticipated $6.99-a-month streaming service, called Disney+, arrives in November. Though no one is expecting a large-scale defection from Netflix to Disney+, it should shake up the industry.What Bloomberg Intelligence Says:The price increases should accelerate 2Q average revenue per unit and revenue gains, even as operating margin isn’t expected to improve until 2H with a 13% target for the full year.-- Geetha Ranganathan, senior media analyst-- Click here for the researchJust the Numbers2Q streaming paid net change estimate +5.06 million (Bloomberg MODL data)2Q U.S. streaming paid net change estimate +309,240 2Q international streaming paid net change estimate +4.75 million2Q revenue est. $4.93 billion (range $4.73 billion to $4.98 billion) 2Q GAAP EPS est. 56c (range 52c to 65c)3Q revenue estimate $5.23 billion (range $4.89 billion to $5.52 billion)3Q GAAP EPS estimate $1.03 (range 63c to $1.39)Data32 buys, nine holds, four sells; average price target $398.57 Shares rose after six of prior 12 earnings announcements GAAP EPS beat estimates in nine of past 12 quarters To see deep estimates in this story NFLX US Equity MODLTimingEarnings release expected 4 p.m. (New York time) July 17Conference call website; also follow along on our live blog(Adds SunTrust commentary in eighth paragraph, updates share move and estimates.)\--With assistance from Karen Lin.To contact the reporter on this story: Kamaron Leach in New York at kleach6@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Nick Turner, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters•12 hours ago
Spotify launches an in-app Disney Hub to lure more fans
The Disney Hub, as the companies are calling the new feature, places soundtracks from Disney's animated films, Marvel movies, "Star Wars" and other Disney properties in one place. Disney's catalog already has a strong presence on Spotify with fans spending more than 2 billion combined minutes so far in 2019 streaming soundtracks, musicals and more.
- Zacks•12 hours ago
Netflix Reports Earnings Today: Will It Top or Flop?
Netflix poised to surpass 150 million paying subscribers when it reports earnings after the closing bell on Jul 17.
- MarketWatch•13 hours ago
Disneyland workers, stop being goofy and instead be as selfish as your CEO
Instead of complaining about working conditions, quit. Unemployment is low. So work somewhere that treats you better.
- Investor's Business Daily•17 hours ago
Is Netflix Stock A Buy Right Now? Here's What NFLX Earnings, Charts Show
Netflix stock flattened out since January. That helped in the stock market correction. But can it regain its former leadership now that we have an uptrend?
- Zacks•2 days ago
The Cable Killer Being Put To the Test: Netflix (NFLX) July 17th
The cable killer is on the loose and releasing earnings tomorrow. Netflix (NFLX) has been on a tear over the past 5 years. This stock has displayed returns close to 500% outpacing the rest of the FANG.
- Benzinga•2 days ago
Netflix Faces Content Shakeup As It Reports Q2 Earnings
Streaming service provider Netflix, Inc. (NASDAQ: NFLX) potentially faces several challenges in holding onto its market share as it prepares to release Q2 earnings after the closing bell Wednesday. NFLX shares are up about 40% since the start of the year even as companies like Apple Inc (NASDAQ: AAPL) announced plans to ratchet up their streaming game. With a dwindling sitcom library, NFLX recently learned that when its contract with NBCUniversal to stream The Office expires in 2020, it will not have the option to renew it.
- American City Business Journals•2 days ago
Fox 2000’s Gabler tapped by Sony to launch HarpersCollins venture
Elizabeth Gabler, who previously oversaw film production as president of Fox 2000, is joining Sony Pictures Entertainment in a deal that includes a partnership with HarpersCollins Publishers to make movies based on books.
- Investor's Business Daily•2 days ago
Netflix Earnings Preview: What To Expect From The Streamer's Report
Internet television network Netflix faces a raft of concerns as it prepares to post results late Wednesday. Wall Street will be looking for commentary on competition and cost controls.
- InvestorPlace•2 days ago
Disney Stock Has Runway, but Not in the Short-Term
Disney (NYSE:DIS) stock has seen a nice run since April, with shares up more than 30%. Investors are highly bullish on the announced Disney+ streaming service. But with the company's current valuation, is short-term upside limited?Source: Shutterstock Disney is a content machine, and the expansion of streaming will enhance monetization of its entertainment properties. But does this mean short-term upside to the Disney stock price? * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Read on to see whether the Magic Kingdom's share price still has runway.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Content is King, and Disney is King of ContentDisney's decade-long acquisition spree (Marvel, Lucasfilm) capped off with the purchase of 21st Century Fox. With franchises such as The Simpsons and Avatar joining the portfolio of Star Wars, and the Marvel Universe, it is safe to say Disney is "King of Content."According to Box Office Mojo, Disney's film distribution arm (Buena Vista) had a 34.9% studio market share for the first half of 2019. Combined with 20th Century Fox's 3.9% market share, the combined Disney-21st Century Fox took home nearly 40% of theatrical box office receipts.While theatrical is only a small portion of film entertainment revenues, these figures indicate how the popularity of the company's content is leaps and bounds ahead of peers.Warner Bros., which is owned by AT&T (NYSE: T) subsidiary WarnerMedia, had only a 14.4% market share. Comcast's (NASDAQ:CMCSA) Universal had a 13.5% market share. Sony's (NYSE:SNE) Columbia Pictures had a 9.8% market share. Paramount Pictures, a unit of Viacom (NYSE:VIA) was far behind the pack, with just 5.1% studio market share.But is this extensive collection of entertainment franchises the company's key to beating Netflix (NASDAQ:NFLX), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) in the streaming wars? Streaming Strategy Key Catalyst for Disney StockAfter the 21st Century Fox purchase, Disney owns two-thirds of streaming service Hulu. Disney now has full operational control, and can buy out Comcast's one-third stake as early as 2024.Along with ESPN+, Disney already has assets in place to rival Netflix in the streaming wars. Add in Disney+, and the company could leverage their content dominance into a commanding streaming market share.But in the short-term, the company's streaming platforms are losing money. Both ESPN+ and Hulu generate operating losses. Disney+ will lose money for several years as well, with the company anticipating the service to only reach profitability in 2024.Disney generates sufficient free cash flow ($2.7 billion alone in Q1 2019) to subsidize these losses, but in the short-term could see earnings take a dip. Excluding one-time items, the company's Q1 EPS was down 13% YoY.On the other hand, Disney may be able to use increased operating efficiencies to mitigate streaming losses. The 21st Century Fox acquisition is slated to be accretive to earnings, as the company expects $2 billion in cost synergies by 2021.Long-term, the streaming strategy could push the Disney stock price to new highs. But at the current valuation, can investors expect additional short-term upside? Valuation: DIS Stock Pricey, But Could See More ExpansionTo a value investor, Disney stock is a hard pass. Trading at 22 times forward earnings, and at an Enterprise Value/EBITDA ratio of 19, DIS stock sells at a premium to its direct peers:Viacom: 10 times forward earnings, EV/EBITDA of 7.7CBS (NYSE:CBS): 8 times forward earnings, EV/EBITDA of 9.5AT&T: 9 times forward earnings, EV/EBITDA of 7.7Comcast: 13.4 times forward earnings, EV/EBITDA of 10But comparing DIS stock's valuation to its "old media" peers may be the wrong way to look at the stock. To the investing community, Disney's killer combo of billion dollar franchises and streaming infrastructure justifies a premium valuation.If the company continues to meet expectations, investors could bid up the Disney stock price to a valuation closer to that of Netflix and Amazon.But are investors getting ahead of themselves? It could be five years before shareholders see a return on the streaming build-out. With several years until streaming becomes a cash cow, investors may have better opportunities to enter Disney stock down the road. Disney Stock Price Has Runway, But Not in the Short-TermDisney has proved itself time and time again to the investing community. Figuring out new ways to reinvent the wheel, the content juggernaut is a master at monetizing entertainment. With this impressive track record, it is highly likely the streaming strategy will be another game-changer.But the streaming growth story is fully baked into the Disney stock price. Short-term, this could mean that shares tread water at the current price level, potentially falling off if the company's quarterly results fail to meet expectations.Long-term, the streaming strategy could move the needle once it reaches profitability. But in terms of short-term gains, investors should be cautious before entering a position in DIS stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Disney Stock Has Runway, but Not in the Short-Term appeared first on InvestorPlace.
- InvestorPlace•2 days ago
3 Dow Jones Stocks to Buy for the Next Decade
The Dow Jones Industrial Average may be a fundamentally flawed index in terms of how it's weighted -- choosing to use price rather than the market cap -- but in terms of what companies are in the index, the Dow Jones can't be beat. Dow Jones stocks represent the "Bedrock of America" and some of the most important companies on the planet. There's a reason why financial media still quotes the close and movements of the Dow Jones Industrial Average.However, some of the thirty Dow Jones stocks are better than others. This is especially true when looking at what names will still be in the index down the road and continuing to lead in the world of business.Some Dow stocks feature very forward-looking businesses models and operations. It's these firms that will still be alive and kicking far into the future. And it's here that investors can score on some future potential and the gains and dividends that come with it. In the end, while the Dow is still important, but some stocks within the index are just better than others.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Monthly Dividend Stocks to Buy to Pay the Bills With all of that said, you might be wondering: Which Dow Jones stocks have the best long-term potential? Here are three of the best stocks to buy from the index. Visa (V)Source: Shutterstock When it comes to long-term bets with the Dow Jones stocks, Visa (NYSE:V) has to be at the top of the list. The firm is one of the biggest plays on the continued shift toward a cashless society. And as one of the oldest and largest names in the space, V continues to dominate as we reach for plastic rather than cash.The reason is Visa's business model. The firm functions as a toll-road and collects fees from merchants, banks and other institutions every time someone uses a credit or debit card. V simply operates a secured payment network and moves money from one account to another. So, despite having a Visa logo on your credit card, V itself isn't issuing credit or lending you money.This middleman position is incredibly important for the future. More transactions continue to hit Visa's network. Over the first three months of the year, Visa processed more than 47 billion transactions. This was a 9% year-over-year jump and it's only growing further. With online commerce and fewer people using cash, Visa will be the dominant force going forward. The firm also continues to make inroads into additional services to keep upstarts like PayPal (NASDAQ:PYPL) at bay.The best part of all of this is that V features very fat margins and amazing cash flow growth. More transactions on its network simply mean bigger profits for the firm. And it continues to share those profits with its investors -- growing its dividend by 850% over the last decade.The future cashless society will run on Visa. That fact makes one of the best Dow stocks to buy for the long haul. Disney (DIS)Source: Shutterstock Let's be honest, as long people have children, Disney (NYSE:DIS) is going to be making money hand over fist. And lately, DIS has plenty of reasons to underscore that fact.For one thing, its buyout of 21st Century Fox created a media powerhouse. This brought many major movie and T.V. franchises under one roof. And if anybody can monetize that content through a variety of channels, it's Disney. And one of those ways will be its new streaming services.Disney has already begun pulling its shows and movies from rival streaming services in order to make them exclusives to its new Disney+ service. That's big because the vast of streaming is kids programming. With the complete Disney, Lucasfilm, Marvel and Pixar movie libraries as plenty of its original programming content from the Disney Channel, Disney+ will be the go-to channel for parents looking for entertainment.When you combine with the firm's new moves in its park and recreation divisions -- such as Star War's Galaxy Edge -- as well as continued movie development from its studios, there's a lot to like about DIS stock for the long haul. And we've already begun to see those results. Just take a look at Disney's record second-quarter earnings. Those great results don't even take into account streaming yet. * 7 ETFs With Oodles of Diversification For investors, DIS stock is a perfect blend of growth for the long haul. Cisco (CSCO)Source: Shutterstock These days, that famous scene in The Graduate wouldn't be about plastics, but about the cloud. Cloud computing, networking, the app economy continues to reshape how businesses and consumers do, well, everything. Which is why Dow Jones stock, Cisco (NASDAQ:CSCO) continues to be an amazing long-term pick.CSCO's bread-n-butter remains networking and communications equipment. It still builds all the switches routers, modems and other guts needed to make modern data centers and the internet/cloud computing function. This isn't a bad business to be in as data center demand continues to grow. Analysts at Jones Lang LaSalle estimate that data center demand will double by 2021 as cloud adoption grows. That will send plenty of money Cisco's way.But the ace up Cisco's sleeve has to be its newfound focus on services and software.The firm now offers plenty of tangential products designed to go along with networking. They can not only build you a network but secure it, offer data analytics and other similar products to look after this equipment. These services often come with long subscription times and very fat margins. It's here, that CSCO has quickly become a cash cow and one of the best dividend stocks in the technology sector.Its approach on both equipment and services sales, coupled with rising overall data center demand, CSCO has the goods to keep growing far into the future.As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Dow Jones Stocks to Buy for the Next Decade appeared first on InvestorPlace.
- GuruFocus.com•2 days ago
Bedrijfstakpensioenfonds Voor De Media Pno Buys The Walt Disney Co
Hilversum, P7, based Investment company Bedrijfstakpensioenfonds Voor De Media Pno (Current Portfolio) buys The Walt Disney Co during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Bedrijfstakpensioenfonds Voor De Media Pno. Continue reading...
- InvestorPlace•2 days ago
Streaming Already Looks Like a Problem for AT&T Stock
Finally, some good news for AT&T (NYSE:T) shareholders: T stock hit a seven-year low late last year, but it has rallied since. In fact, the AT&T stock price reached a 52-week high last week before a modest pullback.Source: Shutterstock However, I'm not buying the rally. I've long been a skeptic toward AT&T, and I see little reason to change. The merger between Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS) could provide some competitive help. But Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Dish Network (NASDAQ:DISH) reportedly are entering the market. Plus, AT&T continues to lose share to T-Mobile and Verizon Communications (NYSE:VZ).Admittedly, a 6% dividend is nice. But AT&T also has some $200 billion in debt. We've seen low-growth, high-debt dividend stocks like Anheuser-Busch InBev (NYSE:BUD) and Kraft Heinz (NASDAQ:KHC) cut their payouts in recent years. AT&T's dividend looks safe for now. But if the cellular business stumbles and DirecTV continues to decline, that may change.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe wild card here is WarnerMedia, built through last year's $85 billion acquisition of Time Warner. WarnerMedia not only adds potential growth, particularly in its HBO and Warner Bros. Entertainment divisions, it gives AT&T control of both content and distribution. That's something media companies increasingly have sought of late. * 7 Dependable Dividend Stocks to Buy But for the AT&T stock price to move higher, the acquisition needs to be a success, and WarnerMedia must grow. The announcement of that unit's plans for a new streaming service casts early doubt on those hopes. The Pricing Problem for HBO MaxWarnerMedia's new service will be called HBO Max, and that alone shows the problem here. WarnerMedia charges $15 per month for HBO Now, the unit's streaming service. The new service will include HBO, along with content from its Turner networks, Warner Bros. studio, and other properties like Looney Tunes.WarnerMedia naturally wants to price its new service in a way that captures the value of the non-HBO properties. But it has a problem. The standard plan from Netflix (NASDAQ:NFLX) costs $13. Disney (NYSE:DIS) is launching Disney+ in November for $6.99 a month.Thus, HBO Max probably is pricing between $15 and $18, according to reports (AT&T hasn't released an official figure yet). For the approximately 35 million existing subscribers, a shift makes sense. But WarnerMedia is then getting at most just $3 per month in incremental revenue from those subscribers.That incremental revenue -- at most slightly over $1 billion a year -- isn't much. And it isn't even free. WarnerMedia is foregoing an estimated $80 million in annual licensing revenue from Netflix just to reclaim the rights to Friends. It ostensibly will compete with its own TBS and TNT networks, which will lose advertising dollars as cord-cutting accelerates. Any incremental revenue from the current HBO subscriber base and the associated profit, still seems to leave WarnerMedia cannibalizing itself.So, the service must add new subscribers. But here's the exclusive content on HBO Max at its launch next year: HBO, Friends, The Fresh Prince of Bel Air, Pretty Little Liars, and content from The CW. There are other original series and movies. But is any customer going to pay $18 for that bundle if she's already passed on HBO? How many customers will pay a premium over Disney's and Netflix's cheaper content? Probably very few. The HBO Max Problem for T StockWarnerMedia head John Stankey has said his goal is for the streaming service to reach 70 to 90 million customers. As The Motley Fool pointed out, Disney has targeted 60 million to 90 million within five years. Netflix currently has 60 million U.S. subscribers.Even with an existing HBO base of 35 million, Stankey's goal seems hugely optimistic. There's little reason right now to see HBO Max outperforming those streaming rivals simply from a content standpoint. DirecTV Now subscriber numbers already are plunging, which bodes poorly for the new service. Execution, meanwhile, has been poor from the jump.Stankey originally publicly floated a three-tier pricing structure which, as CNBC reported, had barely been discussed with other senior executives. That concept was axed later. The Hollywood Reporter detailed the confusing rollout (and the questionable logo) of the service, closing by asking, "what the h-- is HBO Max, really?" That's a question WarnerMedia hasn't yet answered less than a year from the launch. AT&T Has Yet to Address the Cord-cutting CrisisAnd a failed streaming service is a big problem for T stock. It undercuts the entire rationale for combining AT&T with DirecTV and Time Warner. It very well may lead to declining earnings overall, as the mobile business stays sideways, profitable landline revenues continue to fall, and DirecTV and Turner both suffer from cord cutting. Without streaming driving growth, AT&T simply looks like a group of challenged business. Even worse, the company carries a debt load that is literally historic in its size.Particularly with the AT&T stock price back at the highs, investors are betting on some sort of success in streaming. Right now, I don't think that success is on the way. And I believe that, once again, T stock will give back its gains.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Streaming Already Looks Like a Problem for AT&T Stock appeared first on InvestorPlace.
- Investing.com•2 days ago
Day Ahead - Top 3 Things to Watch
Investing.com - Here are the top 3 things that could rock markets tomorrow.
- InvestorPlace•2 days ago
Value Is Here, Right Now in Roku Stock
What goes up must come down, or so we're told. But if that discussion is about pricey-looking Roku (NASDAQ:ROKU) stock, investors would be wise to tune into today's momentum opportunity and buy before shares grow even richer. Let me explain.Source: Shutterstock Its earnings season for many on Wall Street. And if you like watching paint dry, Citigroup (NYSE:C) which kicked off the festivities this week with its results, is just waiting for bulls to wake up to its better-than-forecast report.Then there's ROKU.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith earnings still a full month away Roku stock is breaking out with nary a peep from today's headlines. Unofficially, ROKU could be anticipating a stronger-than-forecast confessional from streaming video on demand or SVOD giant Netflix (NASDAQ:NFLX) which releases results Wednesday night.While Netflix may be the crown jewel, the SVOD market is a crowded field. There's Disney's (NYSE:DIS) Hulu, the forthcoming Disney+, Prime Video from Amazon (NASDAQ:AMZN), HBO Go, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube and the list goes on and on. But as the platform of choice for watching all that entertainment, Roku stands to benefit no matter who can outspend who on content to control our eyeballs. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip So sure, you could maintain that Roku stock is expensive. It is and many of my colleagues at InvestorPlace have argued that point. But during growth phases of a secular trend like the one fueling ROKU, shares aren't going to offer traditional value investors many, if any, opportunities.The good news is ROKU stock is offering momentum traders a terrific chance to profit right here, right now. Roku Stock Weekly Chart Buying pullbacks and larger corrections are of course the most commonly accepted way to "find value" in a name such as Roku stock. And while those types of entries rightfully find favor among investors, they also have their limitations.The most obvious challenge is when that pullback entry in ROKU turns into a much-more-punishing spiral in the share price. Many investors will pull the plug on their prior optimism and dump shares at a loss in fear of even larger losses. And it's easy to second guess ourselves too.More often than we like to believe, those "value" opportunities don't look nearly as attractive when the punishing price action occurs. Remember 2018's market correction? And compared to the stodgy old Dow Jones Industrials or a mature tech company like Apple (NASDAQ:AAPL), those declines paled next to Roku stock's crash of 65%.Today's breakout entry doesn't have those potential shortfalls. With the market at its back and a breakout from a month-long base in hand, a momentum purchase in ROKU stock, plain and simple, makes sense. It has its own special kind of value in this type of environment which shouldn't be dismissed.My only recommendation in Roku is this -- remember to take profits when they're offered. And please don't make the mistake of allowing a breakout to become a pullback and, potentially, something much more sinister.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Value Is Here, Right Now in Roku Stock appeared first on InvestorPlace.
