|Bid||84.54 x 900|
|Ask||84.62 x 800|
|Day's Range||83.45 - 84.86|
|52 Week Range||33.30 - 95.32|
|Beta (3Y Monthly)||0.07|
|PE Ratio (TTM)||50.33|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||87.67|
Match Group undercut the low of its post-earnings gap-up. While some stocks like ROKU keep soaring after earnings, some fade, especially in tough markets.STOCK MARKET TODAY is sponsored by Interactive Brokers. To open an account, go to ibkr.com/whyib
(Bloomberg) -- A top long-only equity hedge fund is betting big on Internet dating.Helsinki-based HCP Focus, which has a slim portfolio of only 12 “high-conviction” stocks, has 16% of its funds invested in Tinder-operator Match Group Inc. The owner of subscription-based online dating websites and applications has risen 93% so far this year, with a surge in new Tinder subscribers boosting second-quarter revenue and fueling a record gain on August 7. HCP entered the stock at the beginning of 2017.“If you’re a heterosexual single guy, you don’t really care about the technical details,” Ernst Gronblom, portfolio manager at Helsinki Capital Partners, said by phone on Thursday. “When a dating platform has reached critical mass, it’s very, very hard to dislodge it. If a competing platform tries to enter the market, it’s very hard to convince people to create accounts on several dating platforms.”HCP Focus manages about 70 million euros ($78 million) and was the top long-only equity fund over the three years through the first quarter, according to BarclayHedge. It returned an average 22% a year in the past five years through July. Match is its biggest holding, followed by Amazon.com Inc., which has been one of the main holdings since the start of the fund.“It’s not overvalued,” he said. “But I don’t see an explosive upside in it anymore because it’s so huge. It has the potential to give a reasonably good return for quite some time.”Gronblom focuses on companies with network effects that can create “natural monopolies”. He also holds PayPal Holdings Inc., Alibaba Group Holding Ltd and Facebook Inc., which has the strongest network effects “of any big company on the planet,” he said.Zeroing in on just 12 stocks is the “sweet spot” for Gronblom, giving enough diversification to keep volatility in check yet concentrated enough to give the full benefits of stock-picking, he said. That’s a strategy that has outperformed in recent years, but it faces risks in the short term from a global bear market.“Most of my portfolio companies are highly valued, at least according to traditional metrics,” he said. “If there’s a panic in the market these companies will typically suffer more severe losses than regular companies.“To contact the reporter on this story: Jonas Cho Walsgard in Oslo at firstname.lastname@example.orgTo contact the editors responsible for this story: Jonas Bergman at email@example.com, Stephen TreloarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The company has a history of spinning off large companies that stay successful after they separate from their parent. It also has a long-standing Denver connection.
It's easy to make the bear case for Uber Technologies Inc (NYSE:UBER). The current UBER stock price -- even after a 14% decline over the past two sessions -- still suggests a market capitalization near $70 billion. Yet Uber isn't close to profitable.Source: Shutterstock In fact, Uber lost a staggering $5 billion in its second quarter, according to last week's earnings report. To be fair, much of that loss was due to stock-based compensation following the company's IPO. But even on an Adjusted EBITDA basis, Uber lost some $656 million in the quarter. In that context, $70 billion seems ridiculous.That said, this is a company with a path to growth. At least some of the current losses are coming from investments in areas like UberEats and Uber Freight. Those investments eventually will generate returns, or so the company hopes. And with a real opportunity in self-driving vehicles, in particular, growth can continue for decades to come -- with profitability likely to follow at some point, and possibly some point soon.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now But the long-term question remains: how much profitability? While the UBER stock price has fallen off a single earnings report, that's the question that really matters. And there's a very real probability that the answer is much worse than Uber shares suggest, even as they trade not far from post-IPO lows. The CEO's Case for UBEROn Friday, one day after Uber earnings, CEO Dara Khosrowshahi gave a lengthy interview to CNBC. The appearance certainly seemed like damage control from the notoriously PR-focused company, as the UBER stock price fell despite some good underlying news in the quarter.There's one passage from the roughly 20-minute interview worth calling out in the context of understanding the fundamentals behind the UBER stock price. CNBC's David Faber asked Khosrowshahi if he agreed that it was an "uphill battle" to get the company to cash-flow positive. Here's how the CEO responded:This is a 20% revenue margin business at 50, 60 plus percent scale. Every single year we add $15 billion of gross bookings at 20% margin - revenue margin. So that's essentially $3 billion of revenue that we're bringing in house. And you know, put that against a $656 million quarterly loss. And you see that with a couple of years of $3 billion-plus revenue coming in, you're going to be able to cover those losses. I am very, very confident of this. Can Uber Technologies Inc Hold Pricing?From a broad standpoint, that's the right answer. Uber will be able to grow to the point where Adjusted EBITDA is positive.Growth stocks across the market have soared this decade on the backs of similar models. And companies -- including both Uber and rival Lyft (NASDAQ:LYFT) -- have taken advantage of that fact to go public earlier than in the past.It's worth going through the exact metrics Khosrowshahi cites because they can also highlight the bear case for UBER stock right now. First, he notes that the business is at 20% "revenue margin." What this means is that Uber has a "take rate" around 20% of bookings, or the price that riders pay. (According to figures from the 10-Q, take rate actually was about 19% in Q2, excluding a one-time driver benefit in conjunction with the IPO.)That metric alone is a worry for Uber. Per its own filings, Uber's take rate has steadily declined in recent years. The key factor has been competition from Lyft and China's Didi Chuxing, who has expanded into Europe and Australia.And one real concern is that it will keep declining. After all, competition can create a "race to the bottom." More importantly, drivers may not be able to survive paying Uber 20% of the fare, while also maintaining and fueling their vehicles and being properly compensated for their time.The argument from Uber bears is that the model doesn't work. The company is funding its business through incentives to consumers and incentives to drivers. That combination can't last forever -- unless Uber (and its rivals) want to keep burning cash. While those promotional incentives have stabilized across the market, per post-Q2 commentary, that may not hold. The risk here is that there's always going to be someone out there willing to undercut the incumbent players. Does Operating Leverage Lead UBER Stock Price Higher?The CEO then notes that the company is running a quarterly loss (which, to be clear, is Adjusted EBITDA) of $656 million, or about $2.6 billion a year, while growing revenue at a $3 billion clip. In theory, that should narrow losses rather quickly.After all, this is a platform company, or at least believes that it is. And the reason platform stocks (think Etsy (NASDAQ:ETSY) or Match.com (NASDAQ:MTCH)) generally trade at high valuations is that incremental margins are huge. Once the platform is built, each extra dollar in revenue comes with minimal costs. So raising pricing, as Etsy did, or simply growing usage both lead profitability to move almost exponentially higher in a very short amount of time.$3 billion in revenue probably can't cover a $2.6 billion hole. $6 billion probably can -- at least if platform economics hold. But here, too, there are questions. New riders on the Uber platform, for the most part, need a corresponding amount of new drivers. (Existing drivers can increase their utilization, but only to a point.) And acquiring new drivers costs money. Either Uber has to market to them, incentivize them, or pay them.For most digital stocks, incremental margins are huge. For Uber, it's not clear that they are. The company's own financials don't show it: Adjusted EBITDA loss more than doubled year-over-year in Q2.To be fair, the company has kept up its spending as it has entered new markets, and looked to grow UberEats, in particular. The longer-term risk, however, is that Uber always will have to keep up its spending. Other BetsThere are real concerns as to whether the core ride-sharing business can ever really be profitable. After earnings, bulls and analysts pointed to a notable improvement in contribution margin from ride-sharing. The figure, according to the earnings slides, jumped to 8% from -4% in the first quarter. Some of the loss, then, is coming from spending on UberEats and autonomous driving, in particular.Again, this is a company worth $70 billion. GrubHub (NYSE:GRUB) is worth $6 billion. As Ian Bezek pointed out last week, Square (NYSE:SQ) sold Caviar to DoorDash for just $410 million. UberEats is going to have to be absolutely dominant to support even a fraction of the current UBER stock price.Uber Freight is intriguing, but faces stiff competition in an industry that has huge numbers of incumbent brokers (many of whom have similar technology). And the autonomous efforts don't necessarily solve Uber's problems: driverless cars certainly would have lower costs, but they'd also have commodity pricing, as MarketWatch contributor Rich Alton pointed out this week.The core distribution business has to reach profitability -- and likely material profitability -- for the UBER stock price to do anything but keep falling. That's not guaranteed. Khosrowshahi's math works on paper. The key question for Uber is whether it will work in practice.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post The Biggest Long-Term Question for Uber Stock appeared first on InvestorPlace.
Companies that turn in better-than-expected earnings are rewarded by better-than-average stock returns. Why Take-Two Interactive, Shopify, Match Group, and Advanced Micro Devices will continue to shine.
The stock market plunged Monday on a China yuan devaluation but then started to rally. Disney and Uber were earnings losers. Roku, Shake Shack were winners.
Nomura Instinet is staying bullish on IAC/InterActiveCorp (NASDAQ: IAC) after its second-quarter report Wednesday and word that IAC is considering shedding its publicly traded subsidiary ANGI Homeservices Inc (NASDAQ: ANGI) — which was the only real drag on IAC during the quarter. Mark Kelley maintained a Buy rating on IAC/InterActiveCorp and boosted the target price from $282 to $314.
There are roughly 4,700 stocks on U.S. exchanges with a market capitalization over $50 million. Of that group, 94 -- almost exactly 2% of the total -- have been the best stocks in the market over the past year, gaining more than 100% over that period.From a sector standpoint, there aren't a lot of surprises in the group. The three best stocks over the past twelve months all are biotechnology plays -- a sector that often provides either huge gains or huge losses. Small-cap tech, another high-risk, high-reward category, provides another chunk of winners, including stocks like Digital Turbine (NASDAQ:APPS) and GlobalSCAPE (NYSE:GSB), both of which have tripled in 2019 alone. * 10 Internet Stocks Getting Hammered The obvious question is how these stocks will perform going forward. In some cases, 100%+ gains are a sign of a company significantly outperforming expectations. In others -- particularly in what remains a bull market -- that kind of upside suggests a stock that may have outrun its fundamentals. These 10 stocks all have posted big gains over the past year, but some may head in a very different direction over the next twelve months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What You Can Expect From the Best Stocks of 2018 Today: Shopify (SHOP)Source: Shutterstock 1-Year Performance: +140%The gains in Shopify (NYSE:SHOP) stock have been truly impressive. No stock in the market has added more value over the last 12 months than SHOP stock. Shopify's market capitalization has risen by nearly $23 billion over that period. To put that figure into perspective, those gains are equal to the entire market capitalization of United Airlines (NASDAQ:UAL).What makes the rise even more impressive is that all of the gains have come just in 2019. But at this point, there's an obvious question as to whether the gains can continue. SHOP stock trades at a staggering 18x next year's revenue estimates, and roughly 350x 2020 consensus earnings-per-share. This week, InvestorPlace contributor Josh Enomoto argued that it was time to take profits in SHOP -- it's difficult to disagree with that sentiment.That said, there's little reason to see the gains suddenly ending. New plans to provide fulfillment for online sellers add another potential profit stream for Shopify. More broadly, investors who have seen growth stocks as "too expensive" in this market generally have missed out on big gains. (Indeed, I made precisely that case on SHOP stock earlier this year; that argument looks close to silly in retrospect.)It does seem like at some point SHOP stock at least needs to slow down, given valuation multiples that are the highest in the market among stocks its size. But nothing has stopped Shopify stock yet, which might mean it can continue to defy gravity for some time to come. Axsome Therapeutics (AXSM)Source: Shutterstock 1-Year Performance: +876%Even including nano-caps, no stock in the market, on a percentage basis, has outperformed Axsome Therapeutics (NASDAQ:AXSM). AXSM stock has gained a stunning 876% over the past year and it has risen 783% in 2019 alone.These types of gains aren't completely unprecedented in the biotechnology space, where stocks can rise by several hundred percent -- or lose most of their value -- on a single trial result. And Axsome's flagship compound, AXS-05, has real potential. The drug has entered Phase III trials for treatment of major depressive disorder, agitation in Alzheimer's and smoking cessation. * 7 Marijuana Stocks With Critical Levels to Watch With a market cap still under $1 billion, AXSM stock could run higher if trials further validate the company's core product. Compounds elsewhere in the pipeline aim to treat migraines and narcolepsy, among other disorders. But as biotech investors know all too well, it takes only one piece of bad news for big gains to reverse in a hurry. Amarin Corporation (AMRN)Source: Shutterstock 1-Year Performance: +481%The good news for Amarin Corporation (NASDAQ:AMRN) is that its stock is up 481% over the past 12 months. The bad news might be that its stock is down 15% over the past 10 months.Indeed, all of the stock's gains came in a short burst last September. A successful clinical trial of the company's Vascepa, a prescription Omega-3, led AMRN to better than quadruple in a single day. The stock kept rising, gaining 579% in just nine sessions.Since then, however, some of the old skepticism toward Amarin has returned. After all, bears argue, Vascepa simply is derived from fish oil, which in theory means it can be easily replicated.But Wall Street, at least, sees it very differently. The average target price of $33 suggests nearly 100% upside from current levels. It very well could be that, once again, skeptics toward AMRN are going to miss out on big gains. Coca-Cola Consolidated (COKE)Source: Shutterstock 1-Year Performance: +114%It's not entirely clear why Coca-Cola Consolidated (NASDAQ:COKE) has gained so significantly over the last year. The company is a bottler for Coca-Cola (NYSE:KO), which is hardly the type of business model to see 100%+ gains over a short period of time.Coca-Cola Consolidated has posted decent results so far this year, but they've hardly been spectacular. First-half physical case volume rose just 0.3% year-over-year. Gross profit dollars did increase 8%. But this is a stock now trading at 39x the sole analyst estimate for next year. That seems like a huge multiple for a business that is posting single-digit growth. * 10 Stocks to Buy on the Trade War Dip There is a theory that COKE stock has risen because some smaller investors -- potentially those using the Robinhood app -- are mistaking COKE for KO. Whatever the cause, it does seem like COKE has run too far. But even if that's the case, it's not clear when the stock will pull back, or how far it might have to fall. Match Group (MTCH)Source: Shutterstock 1-Year Performance: +115%Last May, shares of Match Group (NASDAQ:MTCH) fell 22% in a single session. The decline didn't come from anything Match itself had done. Rather, Facebook (NASDAQ:FB) had announced its entry into the dating space and investors fled MTCH stock as a result.Those investors that sold Match Group stock would regret it. Since that selloff, MTCH stock has nearly tripled. It has gained 115% over the past year, with its $15 billion gain in market value second only to Shopify.The gains may not be over. MTCH gained 24% on Wednesday after a blowout quarter. The user base for Tinder continues to soar, with subscribers rising 39% year-over-year in the second quarter. Match is dominating online dating -- a market that should only grow in the U.S. and, more importantly, overseas.To be sure, MTCH stock isn't cheap at these levels. It trades at 46x 2020 EPS estimates, even though those estimates are likely to rise after the company forecast stronger growth in the second half of 2019. But, in this market, online plays that dominate their space get big multiples (see Etsy (NASDAQ:ETSY), for instance). And betting against MTCH has proven to be foolhardy so far. Workiva (WK)Source: Workvia1-Year Performance: +145%One of the more difficult aspects of this bull market is that investors have had to figure out how to value stocks whose earnings are negative. Data play Workiva (NYSE:WK) is one of those stocks. The company is guiding for an adjusted operating loss in 2019 -- yet WK stock gained 13% on Wednesday after updating that outlook.To be sure, data preparation and collection has been a hot space. Salesforce (NYSE:CRM) paid $15.7 billion for Tableau Software earlier this year. Smaller data prep play Datawatch was taken out by Altair Engineering (NASDAQ:ALTR) late last year. More broadly, investors clearly have been willing to pay up for growth in recent years. * 7 Stocks to Buy to Ride the Vegan Wave That said, there is a case that the gains in Workiva stock have gone a bit too far. WK now trades, even backing out cash, at over 9x revenue. Growth is solid, but at a guided 19% this year not quite spectacular. At the very least, it does look like the easy money has been made. The Trade Desk (TTD)Source: Shutterstock 1-Year Performance: +189%So-called "adtech stocks" like The Trade Desk (NASDAQ:TTD) hadn't been very good investments until recently. Rocket Fuel went closed its first day of trading at $55 and sold itself for less than $3 to Sizmek. The combined company wound up selling its assets for just $36 million.YuMe went public at $9 -- and sold for less than $2. Marin Software (NASDAQ:MRIN) is down 98% from its highs.But for the winners, including The Trade Desk, the news has become notably better of late. While leaders like Facebook and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) took up most online advertising growth, other providers are starting to flex their muscles. So-called "programmatic" marketplaces like the one run by TTD are seeing greater adoption as a result.TTD isn't alone in soaring. The Rubicon Project (NASDAQ:RUBI), after losing 90% of its value, has risen 400% from early 2018 lows -- and roughly matched TTD's performance over the past year.For TTD, valuation does look a bit stretched: The stock trades at 70x next year's EPS estimates. And it's worth wondering what happens if the online advertising space sees another soft patch, as it did just a few years ago. This seems like a story that sounds better on paper -- online advertising growth should continue for years going forward -- than in practice. The market may grow, but the history of that market shows that third-party providers don't always benefit. Cronos Group (CRON)Source: Shutterstock 1-Year Performance: +145%Cannabis stocks like Cronos Group (NASDAQ:CRON) have mostly pulled back in the past few months. And so performance over the past twelve months generally doesn't look all that impressive.CRON stock, too, has pulled back, dropping almost 40% from March highs. But even with that weaker trading of late, the stock still has gained 145% over the past year, and is up 1,000% from 2017 levels.The question with CRON, as it is for much of the sector, is whether valuation remains stretched even after the pullback. The Canadian market looks somewhat disappointing. Legalization elsewhere is moving slower than hoped. And as I wrote last month, Cronos is taking its time as the market develops, which suggests investors should do the same. * 5G Stocks With 10X Potential That said, marijuana companies still have a massive potential opportunity worldwide. And it's possible the weakness of late, in retrospect, will look like a buying opportunity. But patience might be a virtue when it comes to Cronos Group stock. MongoDB (MDB)Source: Shutterstock 1-Year Performance: +142%High-growth software plays are trading at nosebleed valuations. But even in that context, MongoDB (NASDAQ:MDB) is one of the most expensive stocks out there. MDB stock trades at well over 20x 2019 revenue.Of late, however, the rally has stalled out somewhat. MDB has pulled back 23% from highs reached after fiscal Q1 earnings in June. Recently, InvestorPlace contributor Luke Lango argued that the weakness was a buying opportunity, and given the company's explosive growth, there's a case he's right. Revenue increased 78% year-over-year in the fiscal first quarter, and increased adoption of the company's platform should keep growth sizzling for some time to come.That said, this remains a company valued at $8 billion, with negative earnings. And in a suddenly jittery market, it's not hard to wonder if a better price might be on offer. Investors so far have been rewarded for shrugging off valuation concerns. But as with so many software plays, the question is for how long that will last. Roku (ROKU)Source: Shutterstock 1-Year Performance: +158%The 12-month gains in Roku (NASDAQ:ROKU) are reasonably impressive. YTD performance, however, has been even better. ROKU stock now has nearly quadrupled so far this year, easily reversing a steep decline in last year's fourth quarter, and then some.Here, too, the question is whether the gains have to end at some point. Roku's growth is impressive. Q2 earnings look like a blowout. Its importance to the streaming media ecosystem at a time of cord-cutting is obvious. But its valuation, as I wrote in June, is even steeper than headline numbers suggest.After all, about one-third of this year's revenue will come from the sale of Roku players. Gross margins in that business are in the single-digits, meaning hardware sales are likely unprofitable. Back out that revenue, and ROKU stock trades at over 20 times its guidance for platform (i.e., digital), revenue.That figure, in the context of the overall market, doesn't sound that high. Of course, that raises the question of whether the market simply has pushed growth stocks like ROKU and MDB too far. But that worry aside, Roku still gets minimal revenue from Netflix (NASDAQ:NFLX) and Alphabet unit YouTube -- two of the biggest companies in streaming. And so the argument that Roku is a natural beneficiary of cord-cutting seems thinner than some investors might think. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% It may be that streaming offerings from Disney (NYSE:DIS), Comcast (NASDAQ:CMCSA) and AT&T (NYSE:T) will accelerate revenue growth, as those media companies fight for consumer attention. Roku could be an acquisition target at some point. Those potential catalysts are part of all the good news that surrounds Roku. The question after nearly 300% gains in seven-plus months is whether even those catalysts are priced in.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities … though he wishes he did. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post How the 10 Best Stocks From Last Year Hold Up Today appeared first on InvestorPlace.
Moody's Investors Service ("Moody's") said IAC/InterActiveCorp's Ba2 Corporate Family Rating (CFR), existing debt ratings (at IAC and Match Group) and stable outlook are not immediately impacted by yesterday's announcement that IAC will explore the possible distribution of its equity interests in its two largest subsidiaries, Match Group and ANGI Homeservices, to IAC's shareholders. With principal executive offices in New York , N.Y., IAC/InterActiveCorp is a leading media and internet company that owns more than 150 internet-based brands and products.
Match Group, Inc. (NASDAQ: MTCH) had an attractive-looking quarter, but analysts weren’t quite ready to swipe right. Match had a solid beat with positive Tinder trends driving top-line year over year growth of 18%. Tinder use growth was up by 46% over the same quarter last year as customers responded to product improvements.
Analysts see an “interesting” year ahead for IAC/InterActiveCorp., as the company considers whether to spin off subsidiaries ANGI Homeservices Inc. and Match Group Inc. and works to solve ANGI’s marketing issues.
IAC owns an 80% stake in Match Group, the parent company of multiple dating apps including Tinder. The company also owns an 83% stake in Angi Homeservices, the digital marketplace company with brands including Angie's List and Handy. On Thursday, IAC CEO Joey Levin told CNBC in an interview that the company has spun off around nine businesses to shareholders over its 15-year history.
Match Group Inc. shares are off 5.4% in Thursday morning trading after UBS analyst Eric Sheridan downgraded the stock to neutral from buy. The rating change comes after the company's better-than-expected earnings report, which included strong Tinder subscriber growth and an upbeat outlook. The report helped send Match shares up 24% in Wednesday's session. "Looking forward, we now believe that almost all of the call optionality (Tinder user growth, pricing power, a non-Tinder recovery) seem solidly priced in at current levels (stock +68% in last 6 months)," he wrote. "We would need a better entry point than the current stock level to become more constructive against the secular themes evident in the long-term match narrative." Match shares have doubled so far this year, as the S&P 500 has climbed 16%.
Match Group stock gapped up on its second-quarter earnings beat, once again squeezing short investors that bet against the company, which owns the popular mobile dating app Tinder.
IAC/InterActiveCorp (Nasdaq: IAC) is considering a spinoff of Dallas-based Match Group Inc. The New York parent company is mulling the move for the dating services company, which is publicly traded, along with ANGI Homeservices Inc., according to a shareholder letter from IAC CEO Joey Levin. “We don’t yet know where that process will lead – there’s lots of work to be done and details to consider – and we may ultimately choose to spin off both, one or neither,” Levin said in the letter. “This isn’t just legalese to preserve IAC’s options with an expected outcome in mind – we sincerely haven’t yet decided what’s best.” As of March 31, IAC’s economic ownership interest in Match (Nasdaq: MTCH) was 80 percent and its voting interest was more than 95 percent, according to a regulatory filing.
Match stock jumped on its Q2 earnings beat fueled by Tinder mobile app subscriber growth. Parent IAC said it will explore the possibility of spinning off its Match stake.
The macro world is in focus on Wednesday, as volatility continues to run freely through various asset classes. The problem? Too many people think they're overnight experts, even though many struggled to trade the stock market today.Pre-market trading showed that investors were continuing to breathe a sigh of relief, with equities slightly higher. Before they knew it though, the SPDR S&P 500 ETF (NYSEARCA:SPY) and PowerShares QQQ ETF (NASDAQ:QQQ) were down. Both slogged to a 1.5% decline in early trading before closing higher on the day.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recession Signs Flaring UpInvestors were hoping that the inverting yield curve was a mechanism of the Fed. In short, that by raising short-term rates while demand for long-term bonds from global investors remained high, the spread was shrinking. That was threatening to invert the yield curve, a long-time warning signal that a recession may be around the corner in the next 12 months.The consumer is doing well -- as we heard from JPMorgan (NYSE:JPM), Visa (NYSE:V) and other companies -- but investment spending was at its lowest point in years according to the latest GDP report.When the Fed cut rates last week, the hope was that the pressure on the spread would loosen. However, the 3-month/10-year Treasury spread just hit a new low, while the 2-year/10-year spread is near its cycle lows. That's renewed worries of a recession -- and hammered bank stocks. * 10 Stocks to Buy on the Trade War Dip Coupled with increased volatility and an intensifying trade war situation, investors have been fleeing into bonds. More than that though, they've been gobbling up gold too, a common safe-haven asset. The SPDR Gold ETF (NYSEARCA:GLD) is up more than 6% in the past few days and 16.6% in 2019. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has ripped almost 10% in just a few days too. Although, that trade looks likely to unwind soon.The long-term implications are still unclear. In the short term however, this morning's action felt more like confusion than panic. That came as other countries were also lowering rates. Other ConsiderationsLower rates are supposed to be good for assets like equities. Financing is cheaper and that benefits both businesses and consumers. While current price action has many investors in a risk-off mood, it's worth pointing out that the Fed and other central banks are likely to remain in a period of falling interest rates.Lower rates will allow companies with a lot of debt -- companies like AT&T (NYSE:T), CVS Health (NYSE:CVS) and others -- to refinance at lower rates. It will let REITs do the same thing, as well as gobble up more properties with favorable borrowing terms. Disney vs. NetflixDisney (NYSE:DIS) reported its fiscal third-quarter earnings on Wednesday evening, and boy were they a doozy. Earnings of $1.35 per share came up well short of estimates for $1.74. Revenue of $20.24 billion missed estimates by more than $1 billion, despite growing ~33% on the year.The miss was mostly attributed to its Fox acquisition, but spending is a worry too. That's on account of increasing costs for its streaming platforms. The company announced that it will be bundling Disney+, ESPN+ and Hulu (with commercials) for $12.99. Disney Plus will be available separately at $6.99 per month for those interested, with both options launching on November 12th.The $12.99 price tag is in-line with the standard option from Netflix (NASDAQ:NFLX), which offers Basic, Standard and Premium choices.Who will win? I wouldn't say there will only be one winner. NFLX has established itself as a top candidate in the streaming entertainment world. However, the company still generates negative free cash flow and is increasingly finding itself on the hook to produce more and more of its own content.That's as companies like Disney take back its own content, just like NBC and AT&T will do for Netflix's top two shows starting in 2020, with The Office and Friends, respectively.While Disney is paying the price now, it's still profitable and cash flow positive. It's also got a vault of content for its streaming platforms. Many believe that while it endures short-term pain, it should reap long-term gains. That said, shares fell almost 5% on the day.And for any wonder about the long-term trend of streaming check out the absolute monster of quarter Roku (NASDAQ:ROKU) just printed after the close. Movers in the Stock Market TodayCVS Health finished near its highs -- up more than 7% -- after an impressive earnings report, although nothing looks as good as Weight Watchers (NASDAQ:WW). Shares surged more than 42% on the day after impressive earnings results. Here's how to trade both names now. * 5 Top Stock Trades for Thursday: TLT, WW, CVS, NVTA, MU Match Group (NASDAQ:MTCH) didn't finish at the highs, but a 24% gain is still impressive. The company beat on earnings and revenue expectations, while raising full-year guidance as well.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, DIS and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on the Trade War Dip * The 5 Highest-Rated Dow Stocks Right Now * 4 Cybersecurity Stocks to Buy for Long-Term Gains The post Stock Market Today: Recession Worries; Disney vs. Netflix appeared first on InvestorPlace.
The digital media company owns an 80.4% economic interest in Match and an 83.3% in ANGI. "We are beginning a formal process to determine if we should spin those businesses off to shareholders", Chief Financial Officer Glenn Schiffman told Reuters. IAC, owned by television giant Barry Diller, has a history of building businesses and later splitting them into separate companies.