36.67 0.00 (0.00%)
After hours: 4:07PM EDT
|Bid||35.25 x 800|
|Ask||36.67 x 800|
|Day's Range||36.62 - 37.28|
|52 Week Range||35.21 - 50.96|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||14.11|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||51.50|
This fall, Fox will fill three of its nights with sports programming: the NFL on Thursdays, WWE on Fridays and college football on Saturdays.
According to Baupost's 13F filing with the Securities and Exchange Commission, the first quarter of 2019 was a relatively busy period for Seth Klarman (Trades, Portfolio). Warning! GuruFocus has detected 4 Warning Signs with EBAY. What's really interesting about this position is that Klarman built it relatively quickly.
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.
G.research will host its 11th Annual Entertainment & Broadcasting Conference on June 6 in New York City. This research meeting will feature presentations by senior management of leading broadcasting and entertainment companies, with an emphasis on industry dynamics, new technologies, and company fundamentals.
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.
FOX News has named Viant Technology’s Jeff Collins as Executive Vice President of Advertising Sales, announced Marianne Gambelli, President of Advertising Sales for Fox Corporation. Starting today, Collins will oversee advertising sales for all of FOX News Media including, FOX News Channel, FOX Business Network and FOX News Digital.
Take a look at the world's top 10 entertainment companies, spanning the movie, television, cable television, gaming, and streaming video sectors.
Fox Corp. (FOX)(FOXA), which was formed in March following The Walt Disney Co.'s (DIS) acquisition of the majority of 21st Century Fox, held an investor day event on May 9. What remains at Fox following the Disney deal is the television business (the eponymous broadcast network and 28 television stations) as well as a few cable channels (primarily Fox News, Fox Business and Fox Sports). Warning! GuruFocus has detected 4 Warning Signs with GRBK.
NEW YORK and LOS ANGELES , May 16, 2019 /PRNewswire/ -- Fox Corporation (Nasdaq: FOXA, FOX) (the "Company") today announced a change of date for Chief Financial Officer Steve Tomsic's participation ...
Last week showed two of the routes sports media companies can take when it comes to legalized gambling. Disney, which owns ESPN, is content to produce gambling-related content, but “I don’t see the Walt Disney Co., certainly in the near term, getting involved in the business of sports gambling,” Disney Chairman and CEO Bob Iger said during his company’s second-quarter conference call. Fox Sports, though, has decided it wants to get into the business of gambling.
Fox Corp Class A (NASDAQ: FOXA )'s third-quarter print brought no big surprises, and the investor day held Thursday was broadly in-line with expectations, according to BMO Capital Markets. The Analyst ...
April Marks Fourth Month in a Row FOX News Digital Surpassed 100 Million Unique Visitors
Bernie Sanders did it. So did Amy Klobuchar. Pete Buttigieg and Kirsten Gillibrand are about to. But it doesn’t look like you will be seeing Elizabeth Warren fielding any questions from a Fox News audience anytime soon.
(Reuters) - Wall Street Journal-owner News Corp reported a surprise quarterly profit on Thursday, driven by strong growth in earnings at its book publishing and subscription video services units. Trying ...
Disney delivered more of its magic last quarter. However, Trip Miller at Gullane Capital Partners and Disney shareholder, sees enormous potential for the company to still grow.
So far this year, the stock market has been on a tear, but there are a few stock who have earned special rocket-ship rides. Disney (NYSE:DIS) stock came into its earnings report up 23% year to date, which is 50% more than the S&P 500. They have had a banner year, making major acquisitions and announcements to better situate them smack dab in the middle of the streaming wars.Source: Baron Valium via FlickrNetflix (NASDAQ:NFLX) proved that the concept is viable. Thanks to its efforts, we now know that the world wants to cut the cord and stream its content online. This is a trend that will not reverse, so Disney is adapting rather than risk getting left behind and Wall Street realizes this, hence the recent mega celebration in its stock price action.I equate this industry shift to the one that happened for in the tech world. Those companies like Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) that adopted to the subscription model early enough reaped the rewards on Wall Street. Disney is doing now what MSFT did under the Satya Nadella's reign, which is to adapt and thrive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips DIS Stock and the Long-Term PlanFor DIS to accomplish this is not easy or cheap. The operational costs alone are massive, and once you add to that their acquisitions of critical assets, the bills is humongous. But they did receive gems like their stake in Hulu which is instant online presence completely additive to their future offerings.Costs are worrisome, especially since we know that Netflix spends 18 billion per year on content. However, therein lies the Disney advantage -- they already own massive libraries. The demand for their content spans the globe. There are few people on the planet who don't know the house of mouse. As for future content, Disney can produce its streams much cheaper than NFLX, so it can compete on thinner margins to gain share. * 10 Great Stocks to Buy on Dips Disney stock has healthy fundamentals. It sells at an 18 price to earnings ratio so it's not bloated. But I caution buying it up here even after a strong earnings report.Management beat expectations on all metrics. This includes sales, earnings, parks and products. It is important to note that the studios delivered higher operating income than forecast and perhaps this is a good omen to the streaming strategy. Bob Iger announced that the latest Avengers movie will stream on Disney+ starting Dec. 11. So I am not yet sure if this is a headline for the movie or the launch date of the streaming platform yet.There were some disappointments in the media networks with lower cable & broadcasting income and an increase in costs and a decrease in ad revenues. Nevertheless this was a strong report with no causes for concerns. What Should You Do About Disney Stock?Now for the important question: Is DIS stock a conviction buy here?No.Yes, I am confident that the company is making all the right moves. However, I am concerned that the investors have already more than priced in the upside, especially after the $15 spike in April. From here I bet that there are too many weak hands below. At the first sign of trouble, these folks will hit the sell button first then ask questions later.For the very long term, a few dollars won't make a big difference, so those investors should just buy it now. But for the rest of us who prefer to find smart zones to enter trades, there are levels to know for the mid term.If DIS loses $132 per share then it would trigger a bearish program to target $127.50. Then if that level breaks, it could fill the massive gap to $118 per share. It is important to note that this is not a forecast but it is a reasonable scenario especially that the whole market is in jeopardy this week from the China headlines and deadlines. Disney will not likely rally all by itself if the S&P 500 is correcting.To the upside, if the bulls can break through $138 per share, they can then work on setting new all-time highs. I don't like to chase a stock after such a big run with conviction. If I don't already own the shares, I'd consider myself having missed it for now and I would wait for a better entry point.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Tips for New Investors Young and Old * 10 Great Stocks to Buy on Dips Compare Brokers The post Disney Stock Reported a Strong Quarter, But Don't Buy Now appeared first on InvestorPlace.
Stamps.com, Keurig Doctor Pepper, General Electric, Edgewell Personal Care and Fox are the companies to watch.
Stars is no stranger to partnering with a media asset to deliver sports betting: the company acquired the U.K.'s Sky Betting & Gaming in 2018, Allen said in a Thursday note. If Stars controls 10 percent of the estimated $5-billion sports betting market by 2025, the business would be worth $2 per share in a base case scenario, Allen said.