|Bid||133.73 x 800|
|Ask||133.76 x 1000|
|Day's Range||133.39 - 134.17|
|52 Week Range||98.81 - 142.37|
|Beta (3Y Monthly)||0.68|
|PE Ratio (TTM)||14.98|
|Earnings Date||Aug 5, 2019 - Aug 9, 2019|
|Forward Dividend & Yield||1.76 (1.28%)|
|1y Target Est||149.22|
Walt Disney World is bringing the joy of the winter holiday season in a new way to Disney's Animal Kingdom. The theme park giant announced a series of new entertainment offerings that celebrate the natural world. The new events will kick off Nov. 8, alongside many other holiday-related activities across the resort.
Disney's (DIS) Marvel Entertainment and NetEase come together to create original content, including games, comic books and TV series based on Marvel characters.
Facebook's latest virtual reality (VR) device, called Oculus Quest, gets good reviews. Apps download straight to the device and WiFi connects users for multiplayer games. Comic book superheroes are notably scarce in VR content, which seems odd because comic book fans are super-passionate about their make-believe worlds.
Merchandising is going to be a big part of the experience at Disneyland's new expansion, and that includes a handmade Jedi weapon for $199.99 plus tax.
Will Smith was initially worried about playing the genie in Disney's live action version of "Aladdin" after the celebrated performance by the late Robin Williams more than 25 years ago, but says it eventually became a joy. "What Robin Williams did with this character - he just didn't leave a lot of room to add to the genie.
Netflix Inc. (NFLX), the original streaming platform, is now coming to terms with the reality that it is no longer the only game in town. With more than $15 billion in its 2019 content budget , however, Netflix is clearly gearing up to take on all comers. Warning! GuruFocus has detected 2 Warning Signs with NFLX.
For these mental hacks, David Gardner tapped the wisdom of four authors and one alien hive mind. For the stocks, he looked to the Information Age for inspiration.
The competition is no longer mainly with old-school cable packages; rather, it’s with other streaming apps. Already, growth has slowed or turned negative for products like AT&T’s DirecTV Now and Dish Network Corp.’s Sling TV. Take DirecTV Now.
It took a while, but Disney (NYSE:DIS) shares finally have moved. Disney stock traded sideways for nearly four years. But the launch of Disney+ last month sent the Disney soaring to new highs.Source: Baron Valium via FlickrAs it turns out, I was half-right. A week before the company announced the details of Disney+, I wrote that company's streaming move would shape the direction of DIS stock. I noted that if Disney, through its streaming efforts, could create even one-fourth of the value of Netflix (NASDAQ:NFLX), the Disney stock price would rise 20%.Both predictions turned out to be accurate. Of course, I also thought it would take years for Disney to prove the value of its streaming plans, and potentially for DIS stock to achieve those 20% gains. Instead, investors bought the plan immediately. Disney jumped over 11% on the first day, and it would take just a few more sessions to show that 20% increase.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Over 20% Upside Potential With those gains, however, the same problem arises: what moves DIS stock from here? CEO Bob Iger repeatedly has noted that earnings are going to take a hit from streaming in the near term. Even subscriber numbers likely won't be available until early next year. And the rest of the business is not performing well.Disney already has pulled back after the initial pop. I wouldn't be surprised if it returns to its rangebound ways for at least the rest of the year. Disney EarningsDIS didn't move much after earnings (adding 0.4% last week), which makes sense. For all the optimism about streaming, there are real challenges in the operating business which were highlighted in the fiscal second quarter report.Most notably, earnings per share fell 13% year-over-year on an adjusted basis. Revenue climbed 3% but all of the gains came from the assets acquired from Twenty-First Century Fox (NASDAQ:FOX,FOXA). Excluding a modest amount of revenue from Hulu, who was consolidated onto Disney's earnings during the quarter, Disney revenue actually fell year-over-year.To be sure, spending behind ESPN+ and, to a lesser extent, Hulu pressured earnings. But the story at the moment is largely what it was. Media Networks operating income declined again, according to figures from the 10-Q. That's even with affiliate fees (payments from cable and satellite operators) increasing 4%. Those fees will decline at some point as subscriber counts continue to fall and contracts are renegotiated.The Parks business continues to be solid, though attendance was a bit light (including a decline at the international parks). Studio Entertainment revenue and operating income fell, due to a tough comparison against a Star Wars release the year before.Those numbers likely will be much better in Q3 thanks to the blowout success of Avengers:Endgame, but the segment remains choppy, if generally headed in the right direction.Overall, the quarter tells the same story Disney has for some time. ESPN remains a big worry. The rest of the business is growing, but not necessarily spectacularly so. There's certainly nothing in recent results to change that story. Streaming and Disney StockIf the legacy business doesn't inflect, the question is whether the streaming opportunity can move the stock higher, at least in coming quarters. It seems somewhat unlikely, if only because there's unlikely be much in the way of news.We know what the plans are going to be. For the rest of this year, at least, the argument is going to be over what streaming profits look like not in 2020, but more importantly 2022 and 2025. Is Disney a real competitor, or at least a complement to, Netflix? Will new services from Comcast (NASDAQ:CMCSA) and AT&T (NYSE:T) unit WarnerMedia be a threat? Is Disney+ a plan for families or, given properties like Star Wars and the Marvel Universe, broad enough for everyone?The answers to those questions will take years to play out, but most investors likely have taken their positions at this point. Certainly, investors are optimistic. But bear in mind that Disney stock added $24 billion in market value in one day when the details of the streaming plans were announced. DIS now trades at over 20x next year's earnings.That's a multiple based on streaming growth, and the fact that FY20 profits will be depressed. Investments behind the streaming effort, as well as the loss of high-margin licensing revenue as Disney pulls its content from other distributors (including Netflix), are going to hit earnings next year.That's fine. An investor can't argue, as I have, that Netflix can grow into its valuation, but that Disney is too expensive at 22x FY20 earnings. But the catch with Disney stock is that if optimism towards streaming grows, it likely comes at a cost to near-term earnings. What Moves DIS Higher?If cord-cutting accelerates, making streaming more valuable, Disney's existing properties will take a hit in terms of both affiliate fees and advertising revenue. If it doesn't, it's tougher to make the argument that Disney+ is worth more than what's already baked into the Disney stock price.Longer-term, that problem may not matter. Even with the sideways trading of the last few years, Disney has been a terrific investment. That might continue. But it's going to take time. It's exceedingly difficult to see a positive catalyst for Disney stock before 2020 at the earliest. And so DIS may resume its old ways until the streaming service has a chance to drive even more optimism.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Streaming Excitement Isn't Enough to Keep Boosting Disney Stock appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Wynn Resorts, MGM Resorts International, Walt Disney, Caesars Entertainment and Stars Group
Amid international expansion and record subscriber numbers, Netflix (NASDAQ:NFLX) faces more competition than ever. Netflix will soon lose Disney's (NYSE:DIS) content. Moreover, it faces more companies adding a streaming service. Amid these threats, Netflix stock continues its long-term uptrend.Source: Vivian D Nguyen via Flickr (Modified)So far, Netflix has maintained this lead with new content and market expansion. However, keeping this current pace could hurt holders of Netflix directly. With a heavy debt load, the company may have little choice but to issue more shares, directly undermining the value of NFLX stock. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Transformation and Netflix stockNetflix has become arguably the most transformative company of the last decade. Looking back, some might find it hard to believe that the Justice Department once fretted over the attempt by Blockbuster Video to take over its then-largest competitor, Hollywood Video. Netflix made this irrelevant.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the last few years, we have also seen consumers increasingly drop pay-TV services in favor of streaming video. The once-loved programming of the major networks only gains scant attention today. Again, we have Netflix to thank.Consequently, valuations in Netflix stock have remained high for several years. Admittedly, I have predicted Netflix's relative decline for a long time, and the market has responded with a higher price for Netflix. For now, content and aggressive international expansion have kept Netflix ahead of its competition. Netflix Stock Isn't ProfitableHowever, I think our own James Brumley points to the real problem that true profitability remains elusive. As he points out, Netflix will reportedly spend $15 billion on content in 2019, up from the $12 billion in outlays for 2018.Interestingly, the company balance sheet states that "cost of revenue" came in at only $9.97 billion for 2018. Content seems like a cost of revenue to me. Regardless, these numbers indicate that if Netflix considered its homegrown material a true cost of revenue, it does not earn a profit.So far, Wall Street has not punished Netflix stock. Moreover, even though I disagree with my colleague Will Ashworth on NFLX, I think he correctly predicts that Disney+ will not lead to widespread cancellations of Netflix service. But the worries extend beyond Disney+. They extend to Disney's Hulu, Prime Video from Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), which can afford to outspend Netflix on content, and numerous others. Stockholders Will PayNetflix has now resorted to junk bonds to fund its expansion. As a result, it currently holds about $10.3 billion in long-term debt. This has become a heavy burden on a firm with only $5.7 billion in stockholders' equity. When the junk bond market ceases to remain an option, the company will have little choice but to cut content spending or resort to issuing more stock.As it is, NFLX stock trades at about 127 trailing earnings. The equity supports a forward price-to-earnings (PE) ratio of just over 60. Admittedly, many traders will pay that multiple if the predicted earnings increases of 27.6% this year and 71.3% in 2020 come to pass. However, if the supply of shares proliferates, investor sentiment could cool off.Looking at the charts, one might wonder if it has already cooled off. Since February, Netflix has traded in a narrow range. Time will tell whether this period is a pause before moving higher or an indication of increasing doubts about NFLX.For this reason, I do not recommend a short position. However, with a steadily worsening balance sheet and negative cash flows, I would not own this name at current levels. Final Thoughts on Netflix StockNetflix may soon have to fund its content budget with aggressive share issuance, thereby undermining the stock's value. For most of its history, Netflix has built itself on market disruption.Now, with numerous companies copying its model, it has had to move into new markets and spend heavily on content to stay ahead.However, the cost of this expansion has forced NFLX to issue increasing amounts of junk bonds. With more debt becoming less of an option, Netflix will have to become just another streaming company or dilute its stock. Both options bode poorly for holders of Netflix stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Sooner or Later Content Costs Will Catch up to Netflix Stock appeared first on InvestorPlace.
Sinclair has acquired the largest portfolio of local sports broadcasting rights in the U.S. Here's what that means for the company.
While value investors continue to read through Seth Klarman (Trades, Portfolio)'s most recent partnership letter, others are tracking his latest filings to see what the guru has deemed worthy of buying. Warning! GuruFocus has detected 3 Warning Sign with CDAY.
Skyrocketing compensation received by Corporate America's leading chief executives continues to be a topic of heated debate, and that's nowhere more clear than in the latest list of best paid CEOs, which includes well-known names such as Tesla Inc. CEO Elon Musk, Walt Disney Co. CEO Bob Iger and Apple Inc. leader Tim Cook. The first among them was Tilray Inc. (TLRY), a Canadian company majority-owned by private equity firm Privateer Holdings. Among the biggest beneficiaries of Tilray's IPO was its CEO and President, Brendan Kennedy, who was the second-highest paid U.S. executive in 2018 among companies traded on U.S. exchanges.
U.S. equities are trading with modest losses on Monday as the U.S.-China trade standoff looks set to take a turn for the worst. The latest is chatter that Beijing could retaliate with an export ban on rare earth metals into the United States, with President Xi Jinping visiting the facilities of JL MAG Rare-Earth in what looks like a scripted warning.This follows the over-the-weekend signing of an executive order by President Trump that prohibits U.S. companies from doing business with Huawei without getting a special license first. This is adding to the impression that the trade fight isn't going to be resolved anytime soon and could well be a drag on both economic and earnings growth going forward. * 10 Baby Boomer Stocks to Buy Investors, for their part, are seeking refuge in key defensive stocks that are holding up well in the volatile environment. Here are five large-cap stocks to consider:InvestorPlace - Stock Market News, Stock Advice & Trading Tips MasterCard (MA) Click to EnlargeMasterCard (NYSE:MA) shares are flirting with new record highs on Monday, continuing to pressure the $255-a-share level, capping a massive 46% rally off of the lows seen in late December. The company recently announced an extended partnership with Lyft (NASDAQ:LYFT) to provide drivers with immediate access to their earnings.The company will next report results on July 30 before the bell. Analysts are looking for earnings of $1.82 per share on revenues of $4.1 billion. When the company last reported on April 30, earnings of $1.78 beat estimates by 12 cents on a 8.6% rise in revenues. Microsoft (MSFT) Click to EnlargeMicrosoft (NASDAQ:MSFT) shares are consolidating near recent highs around the $130-a-share threshold. Recent results have revealed growing momentum in its Office and cloud businesses. The company has been busily penning partnership agreements with the likes of Sony (NYSE:SNE) and JPMorgan Chase (NYSE:JPM) to pursue new strategic initiatives around technology like blockchain and AI. * 7 Stocks to Buy that Lost 10% Last Week The company will next report results on July 18 after the close. Analysts are looking for earnings of $1.21 per share on revenues of $32.6 billion. When the company last reported on April 24, earnings of $1.14 beat estimates by 14 cents on a 14% rise in revenues. Visa (V) Click to EnlargeVisa (NYSE:V) shares are also hovering near recent highs, attempting to break through the $165-a-share level, capping a near 40% rally off of the lows set in late December. The 50-day moving average has been providing consistent and steady support, setting up a breakout to new records. Coverage was recently resumed at Goldman with a Buy rating.The company will next report results on July 24 after the close. Analysts are looking for earnings of $1.33 per share on revenues of $5.7 billion. When the company last reported on April 24, earnings of $1.31 per share beat estimates by 7 cents on an 8.3% rise in revenues. Disney (DIS) Click to EnlargeDisney (NYSE:DIS) shares are sitting in the middle of a two-month consolidation range that capped a 22% rally out of a long consolidation channel going all the way back to 2015. The big recent news was that the company assumed full operational control of over-the-top streaming provider Hulu -- broadening the company's efforts to challenge Netflix (NASDAQ:NFLX). * 7 Stocks to Buy for Over 20% Upside Potential The company will next report results on Aug. 7 after the close. Analysts are looking for earnings of $1.7 per share on revenues of $21.5 billion. When the company last reported on May 8, earnings of $1.61 per share beat estimates by 4 cents on a 2.6% rise in revenues. Pepsi (PEP) Click to EnlargePepsi (NASDAQ:PEP), like Coca-Cola (NYSE:KO), is enjoying a steady bid here as investors flock to defensive consumer staple names. The push to new record highs marks an exit from a three-year-long consolidation range centered near $110. The company was recently upgraded by analysts at Goldman, lifting their rating out of sell territory.The company will next report results on July 9 before the bell. Analysts are looking for earnings of $1.5 per share on revenues of $16.3 billion. When the company last reported on April 17, earnings of 97 cents per share beat estimates by 4 cents on a 2.6% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns appeared first on InvestorPlace.
An Atlanta creative content agency plans to boost its workforce by 60% thanks to its recent venture capital funding.
Imperial Capital reiterated its outperform rating on Walt Disney Co. stock on Monday, ahead of the entertainment giant's next investor day scheduled for Wednesday that will introduce analysts to the new Star Wars Galaxy Edge theme park. Analyst David Miller maintained his stock price target of $147, or 9% above its current trading level, and said he expects the park due to open at the end of the month in Anaheim, Calif. to enjoy extremely high volumes, which are already built into his park estimates for the third and fourth fiscal quarters, as well as for fiscal 2020.The Anaheim park is smaller in scale than the one Disney is building in Orlando, Fla, but it means the company will have the benefit of two big park events on both coasts in one calendar year. Outside of the park news, Disney is facing higher losses at Hulu, in which it now owns a 70% stake, with a new put/call arrangement with Comcast Corp. for the remaining shares. Miller shaved 4 cents off his fiscal 2020 GAAP EPS estimate to reflect the bigger stake. Disney has a path to profitability for the streaming service, which has 25 million subscribers. Disney shares were down 1.2% Monday, but have gained 22% in 2019 to date, while the S&P 500 has gained 13% and the Dow Jones Industrial Average , which counts Disney as a member, has gained 10%.