111.73 -0.03 (-0.03%)
After hours: 7:42PM EST
|Bid||111.45 x 2200|
|Ask||111.73 x 3000|
|Day's Range||110.61 - 113.18|
|52 Week Range||97.68 - 120.20|
|Beta (3Y Monthly)||0.67|
|PE Ratio (TTM)||13.37|
|Earnings Date||Feb 5, 2019|
|Forward Dividend & Yield||1.76 (1.57%)|
|1y Target Est||124.48|
Netflix shares rose 6.5 percent to close at $354.64, adding to their 30 percent rise so far this year. "It highlights that Netflix has pricing power and even after the increase it remains a very cheap entertainment alternative," Pivotal Research Group analyst Jeff Wlodarczak said. Netflix has been spending billions to bolster its original content, which boasts award-winning shows such as "The Crown," "Black Mirror" and "Wild Wild Country" to fend off intensifying competition from players such as Amazon.com's (AMZN.O) Prime Video service and Hulu.
It's costing you more to stream Netflix, head out to Disneyland, or be a part of AMC's multiplex subscription service. But until you stop paying, they'll keep pushing prices higher.
The issuing entity will be spun off from 21st Century Fox per the $72 billion transaction with Disney, and as such will pay a one-time special dividend to its former parent of $8.5 billion, according to a filing last week. 21st Century Fox, founded by Rupert Murdoch and led by his son James, is expected to maintain investment-grade ratings after the transaction.
Viacom Inc (NASDAQ: VIAB ) (NASDAQ: VIA ) got an upgrade Tuesday from one analyst after updates to his 2019 earnings estimates for media stocks implied plenty of potential upside for Viacom investors. ...
Walt Disney World's construction crews are ready to begin setting up the infrastructure needed for the Reflections: A Lakeside Resort in Orlando. The resort, announced late last year, is a new 900-room property being built at the site of the former River Country water park on Bay Lake, which closed in 2001. Disney has said the new resort will be nature-themed and have Disney Vacation Club villas, including for the theme park company's timeshare customers.
Netflix (NFLX) saw its stock price climb 6% Tuesday after the streaming TV powerhouse raised its prices on all of its streaming plans for the first time in over a year just a few days before it reports its Q4 financial results.
At this point, Disney is unlikely to find a single buyer to pony up the $20 billion the package is estimated to be worth in time.
The streaming video landscape is dominated by Netflix, Inc. (NASDAQ: NFLX ) and Amazon.com, Inc. (NASDAQ: AMZN ), but UBS says Walt Disney Co (NYSE: DIS ) can position itself to become a leader as well ...
Stocks are continuing to struggle with the 24,000 level on the Dow Jones Industrial Average as investors deal with various crosscurrents. Parts of the Federal government remain shuttered. U.S.-China trade talks continue to grind on as the Chinese economy shows signs of slowing. The fate of Brexit remains unknown. And the Federal Reserve seems scatterbrained, unable to decide if it's dovish or hawkish after the harrowing market environment in December. In keeping with the directionless feel, stocks opened strong on a Netflix (NASDAQ:NFLX) price hike, but it is now cutting gains as trade talks seem to have hit another impasse. Bank earnings have also been disappointing with Wells Fargo (NYSE:WFC) reporting the worst mortgage loan numbers since the financial crisis as the housing market slams into a wall. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Companies That Could Post Decelerating Profits As a result, a number of iconic Dow Jones stocks look vulnerable to renewed downside pressure. Here are five such stocks to sell now: ### Caterpillar (CAT) Caterpillar (NYSE:CAT) shares look vulnerable to a reversal as CAT contends with resistance from four-months of overhead resistance. As such, CAT stock has set up a test of the recent lows near $117, which would be worth a decline of 10% from here as the U.S.-China trade talks go nowhere fast. This is poor timing for Bank of America Merrill Lynch analysts, who recently upgraded the stock to Buy. The company will next report results on Jan. 28 before the bell. Analysts are looking for earnings of $2.98 per share on revenues of $14.3 billion. When the company last reported on Oct. 23 earnings of $2.86 beat estimates by a penny on an 18.4% rise in revenues. ### Disney (DIS) Disney (NYSE:DIS) shares are suffering a sharp reversal lower, falling back below its 50-day moving average to form a "bearish engulfing" candlestick that presages more weakness ahead. Not exactly the behavior investors were looking for ahead of the opening of the eagerly awaited Star Wars theme park areas in Disneyland and Disney World. * 10 A-Rated Stocks the Smart Money Is Piling Into DIS will next report results on Feb. 5 after the close. Analysts are looking for earnings of $1.6 per share on revenues of $15.4 billion. When the company last reported on Nov. 8, earnings of $1.48 per shear beat estimates by 13 cents on an 11.9% rise in revenues. ### Goldman Sachs (GS) Shares of Goldman Sachs (NYSE:GS) have stalled out near resistance at the $180-a-share level, setting up a likely reversal that tests the lows set in late December. Financial stocks overall are showing weakness this morning after earnings results from WFC and JPM revealed problems in mortgage loan activity and fixed income trading. The company will next report results on Jan. 16 before the bell. Analysts are looking for earnings of $5.4 per share on revenues of $7.9 billion. When the company last reported on Oct. 16, earnings of $6.28 per share beat estimates by 94 cents on a 3.8% rise in revenues. ### Home Depot (HD) Shares of Home Depot (NYSE:HD) are rolling lower after testing highs previously set in November and December. HD stock is remaining below its 200-day moving average as the one-time momentum favorite succumbs to the realization that the U.S. housing market is in trouble -- plagued by a combination of higher mortgage rates, absurd pricing and impacted affordability. * 7 Video Game Stocks on Steep Discount The company will next report results on Feb. 12 before the open. Analysts are looking for earnings of $2.2 per share on revenues of $26.6 billion. When the company last reported on Nov. 13, earnings of $2.51 per share beat estimates by 24 cents on a 5.1% rise in revenues. ### JPMorgan (JPM) Shares of JPMorgan (NYSE:JPM) are struggling to stay above the $100-a-share level and remain well below their 50-day and 200-day moving averages. The company reported results before the bell. Earnings of $1.98 per share missed estimates by 21 cents on an 8.1% rise in revenues. Management cited a decline in fixed income trading revenue, which dropped 16% from last year. When the company last reported on Oct. 12, earnings of $2.34 per share beat estimates by 8 cents on a 7.8% rise in revenues. Watch for a test of the late December low as shareholders realize that loan growth and credit quality is vulnerable, setting up a 10% drop from here. As of this writing, William Roth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Dow Jones Stocks to Sell Before Things Get Uglier appeared first on InvestorPlace.
Arguably, Netflix's (NASDAQ:NFLX) most compelling drama lately hasn't come from any of its original shows, but rather its share price. NFLX stock has left investors on the edge of their seats in recent months. Netflix stock traded at $380 at the beginning of October. By December 24th, it had plummeted to just $234. Now, less than a month later, Netflix stock has regained $100 per share. The recent move amounts to a 42% recovery off the lows. That was before this morning, when Netflix announced a subscription price increase. NFLX is up 6% in this morning's trading and a full 50% from its Christmas Eve lows. And don't think that the action is about to stop. That's because Netflix is set to report earnings this Thursday. Given the recent volatility around Netflix stock, traders are likely to cause an outsized move following the earnings report. Here's what you need to know ahead of Thursday's news release. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Subscriber Growth Probably the single most important data point will be how many new subscribers Netflix picked up on the quarter. The market is looking for around a 7.6 million subscriber growth figure for the quarter. This data point, more than anything else, shows whether or not Netflix's strategy is working. * 5 Fallen-Angel Stocks That Have Been Oversold The company has bet its balance sheet on original content. It is spending more than $8 billion per year on making new shows. If all these new works bring in more customers, Netflix stock will continue to be a big winner. But if that content misses the mark - and to be frank, a lot of Netflix original productions lately have gotten mediocre to bad reviews - then Netflix stock will probably drop. It's important to remember that over the past three quarters, Netflix topped earnings estimates each time. Yet, in ensuing days, Netflix stock traded down on two of those three occasions. Again, like with Amazon.com (NASDAQ:AMZN), investors aren't here for earnings today. Instead, they are looking at the long-term outlook for the business. So don't get too worried about earnings and revenue numbers for this past quarter, instead focus more on subscriber growth and forward guidance. ### What Happens With Margins? Analysts will also be watching Netflix's profit margins closely. Until recently, Netflix has been the pretty clear and unambiguous leader in on-demand video streaming. Netflix showed it is confident in this position with this morning's price-increase announcement, and the market is showing it shares this confidence with today's rally. However, I think Netflix -- and NFLX investors -- need to pay attention to the new streaming services sprouting up all over the place. New offerings on the way, such as Walt Disney's (NYSE:DIS) much-discussed services, may undercut Netflix on pricing as well. Thus, it will be of key importance to see how Netflix's profit margins come in. A lso, pay close attention to customer churn. If Netflix subscribers start defecting to other cheaper services, it will end up being a huge obstacle to Netflix's ability to generate reasonable profits going forward. ### How Will International Markets Fare? One of the interesting pieces of the Netflix investment thesis is its presence in dozens of overseas markets. Not only is Netflix there, it actively produces content in the local language on subjects relevant to each international market. This gives Netflix a huge edge against U.S.-based rivals that don't have much or anything in terms of international content. Where I live here in Latin America, Netflix is the main brand in video streaming simply since it has a wide library of both American hits and local Spanish-language content. This is potentially a huge advantage for Netflix. At the end of the day, the United States and Canada combined are just 350 million people, but there are 2 billion people worldwide that might be interested in and be able to afford a Netflix subscription. That said, entering all these markets hasn't come cheaply. Netflix finally started turning a net profit on its foreign markets in aggregate in 2017. Its profit margin on these other geographies far pales in comparison to the North American market. A large portion of the valuation debate for Netflix stock is how profitable and how much market share it can pick up overseas. So it will be fascinating to see how the company did this quarter outside of the United States. ### NFLX Stock: What Happens After Earnings From a technical perspective, this earnings report really is make or break for NFLX stock. If the current rally pushes NFLX near or above $360, the next stop after earnings would likely be $400. The all-time high at $422 would easily be within reach assuming the market's recent recovery continues. A positive outcome off earnings would wipe away the memory of the recent crash in Netflix stock. On the other hand, technically, things get very ugly for Netflix stock if they come up short on earnings. Bears would point to a declining channel, with the stock making lower highs and lower lows. The stock would almost certainly drop back under $300, and if rough market conditions return, NFLX stock could even conceivably fall back under $250 again. * 8 Dividend Stocks With Growth on the Horizon Earnings reports for tech companies usually lead to volatility. But this one is downright crucial for setting the 2019 tone for Netflix stock. Watch the subscriber numbers, the guidance, profit margins, and how international revenues and profits are going. Those will be the key factors in determining if Netflix's recent rebound is here to stay or will soon vanish. At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post This Earnings Report Will Make or Break Netflix's 2019 Prospects appeared first on InvestorPlace.
I've been a skeptic toward Apple (NASDAQ:AAPL) for some time. But as Apple stock chugged higher to $230 in early October, I admittedly threw in the towel. The new iPhone lineup, including the iPhone XR, seemed to prove that the company could sell devices at ever-higher prices. With AAPL stock still reasonably cheap by traditional metrics, it seemed unwise to fight the tide. But the long-running fears I've had toward Apple's growth have spread. Lowered guidance ahead of fiscal Q1 results highlighted weakness in China. The end of the iPhone cycle removed a catalyst for Apple stock- as has been the case in the past. And suddenly, the entire market is worried about the "commoditization" of the iPhone. * 5 Fallen-Angel Stocks That Have Been Oversold And with that worry, the problem becomes clear for Apple stock. It is exceedingly difficult for the company to grow profits if it can't continue to raise prices on the iPhone. The product accounted for 62.7% of revenue in fiscal 2018, according to the 10-K. iPhone revenue, helped by the iPhone XR, grew 18% in FY18 -- but on the back of a minimal (less than 0.5%) increase in unit sales. In fact, Apple isn't even disclosing unit sales going forward, suggesting that the figure likely has peaked. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With 63% of revenue and a huge chunk of profit at risk, what's Apple to do? Wedbush analysts have an idea. But their report only seems to highlight the fact that Apple is in a tougher position than bulls -- and a seemingly cheap valuation -- would suggest. ### Services, M&A, and Price Cuts on the iPhone XR In a report released Monday, Wedbush analysts Daniel Ives and Strecker Backe assigned a $200 12-month price target to AAPL, representing 30%+ upside. They also discussed what had driven AAPL stock down and what could bring it back up. The firm wrote that "Apple's pricing hubris on iPhone XR" was the key factor in the guidance cut. The firm estimates that of 350 million iPhones worldwide that could be upgraded in the next 12-18 months, some 60-70 million are in China. With prices in the market still too high, Apple is ceding too many of those sales to cheaper options from in-country rivals like Huawei and Xiaomi. Cutting prices would build out the installed base. Building out the base would add new users for the services businesses, which has become an increasingly important aspect of the bull case for AAPL over the past few years. And, the firm recommends, the company then should enter the content space on the back of those users, with several M&A targets cited. The "highest-probability" options are privately held studio A24, Lionsgate (NYSE:LGF.A,LGF.B), and Sony (NYSE:SNE) Pictures. Viacom (NASDAQ:VIA,VIAB) and even Netflix (NASDAQ:NFLX) and Disney (NYSE:DIS) are mentioned as well. The recommendations do make some sense. Apple's Services business has grown impressively, with revenue up 53% over the past two years combined. The existing user base could drive a content offering. And Apple likely needs to do something with its cash pile that now totals about $237 billion. But the recommended strategy actually highlights the problems here. And from here, it makes the $200 price target look like a stretch. ### The Problems for Apple Stock The problem, again, is the company's reliance on the iPhone. Services revenue has grown 53% in two years. But it totaled $37.2 billion in FY18 -- barely one-fifth that of the iPhone. Wedbush's estimate of 750 million active iPhones suggest the company makes about $50 per phone per year worldwide. Cutting prices and trading, say, $200 in revenue -- and essentially, profit -- for $50 in annual revenue isn't a good deal. It isn't a deal that, even with high margins in services, jumpstarts growth. And it highlights the problem with the bull case for AAPL being based on services: the business simply isn't that big. The iPhone is so huge that it nearly by itself moved Apple stock to a $1 trillion-plus valuation, however briefly. Nothing else -- not services, not the Apple Watch or the iPad -- can really move the needle. Wedbush itself cites "how critical China is" for Apple moving forward. That's a problem in the middle of a trade war that CEO Tim Cook has admitted raised anti-American sentiment. Even the Services business faces a risk as companies like Netflix look to avoid the "Apple tax" on iOS apps. As for M&A, Apple is way behind. Netflix is dominating streaming. AT&T (NYSE:T) is attacking the space. There's Hulu and Amazon.com (NASDAQ:AMZN) and even Facebook. How does being a second-tier player in content offset the loss of pricing power in smartphones? ### The AAPL Valuation The qualitative case here simply seems to fall flat. Services is a valuable business, no doubt. But Apple still has a market capitalization over $700 billion -- a 'valuable' business isn't good enough. Wedbush seems to understand that. Its model values Apple on the whole at about $950 billion, and the business at ~$820 billion net of cash. Services accounts for a stunning $400-$450 billion of that total. That number values the Services segment at 11-13x FY18 revenue, and probably ~10x FY19 numbers. Both multiples are similar to those of NFLX -- a stock that pretty much every AAPL stockholder thinks is badly overvalued. From here, that number looks prohibitive. Wedbush admits the valuation is the subject of a "big debate". From here, with no content edge as yet, and worries about more large customer sidestepping the 30% fee in the Apple Store, it looks close to absurd. * 8 Dividend Stocks With Growth on the Horizon And that's a problem for AAPL. If a bull needs a double-digit revenue multiple on Services to model substantial upside, then there's clearly real reason for worry about the iPhone. If an investor can't justify that $400B+ figure -- and I certainly can't -- then AAPL at best is an avoid, even at the lows. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post iPhone XR Price Cuts Don't Make a Bull Case for Apple Stock appeared first on InvestorPlace.
Shares of Viacom Inc. are up 1.1% in Tuesday morning trading after Pivotal Research Group analyst Brian Wieser upgraded the stock to buy from hold. He raised his price target to $36 from $33. "We think that managerial normalcy is by now reasonably well entrenched in the company, which should also help as Viacom rebuilds," he wrote. "The film studio is the one significant part of the business which provides meaningful upside given its scale and the likelihood that it will return to profitability (enhancing Viacom's overall profit margins)." In a note to clients, Wieser also became slightly more optimistic about Discovery Communications Inc. , which he rates at hold, and Walt Disney Co. , which he rates at sell. He upped his price target on Discovery shares to $30 from $27 and raised his target on Disney's stock to $97 from $95. Viacom shares are down 5.3% over the past three months, as the S&P 500 has dropped 5.6%.
Netflix is expected to have spent $13 billion on content for the full year of 2018. This is what drives subscriber growth, and that is what - to this point - has driven share price. are all expected to soon raise the stakes, and in the case of Disney, the firm is already king of content.
The Zacks Analyst Blog Highlights: Disney, United Parcel, U.S. Bancorp, Constellation and Tyson
# Walt Disney Co ### NYSE:DIS View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is low for DIS with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $12.97 billion over the last one-month into ETFs that hold DIS are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. DIS credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Bulls versus Bears: Who Will Rule the Stock Markets in 2019?(Continued from Prior Part)Bank of America’s targetBank of America’s equity and quantitative strategist, Savita Subramanian, expects a decline in the S&P 500 (SPY) in
CEO Tim Cook has talked up the company's non-iPhone divisions in an effort to restore investor confidence. Still, Apple's services unit could be headed for a slowdown in Q4. But does this mean investors should run away from Apple stock?
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains dives into some of the latest streaming TV news from Roku, Hulu, and others before he breaks down some of the biggest streaming sports storylines to watch in 2019 and beyond.
The company plans to “retain rights to certain titles for its new service,” suggesting some movies and shows will no longer be available to rivals like Netflix Inc. NBC said its parent Comcast and sister company Sky will offer the product. Key InsightsVirtually all of Hollywood’s biggest studios and many of the largest pay-TV providers offer or plan to offer a streaming service, making the industry look a lot like the early days of railroads, when operators laid competing tracks side by side in a kind of business free-for-all.
Shares of Apple Inc. dropped 1.9% in morning trade Monday, enough to pace the Dow Jones Industrial Average's decliners. Wedbush Morgan analyst Dan Ives reiterated his outperform rating and $200 stock price target, which is about 34% above current levels, but said Apple has to "aggressively" cut prices in China on its iPhone XR to boost lagging sales and that a "significant" video content acquisition is needed soon. He said the XR price cuts are needed to pull forward roughly 15 million to 20 million iPhones that would otherwise sit idle, waiting for the next release, or worst case, move to lower-priced competition. And while Apple is counting on its services business for future growth, it is currently "playing behind the eight ball in this content arms race" with competitors including Netflix Inc. , Walt Disney Co. and AT&T Inc. . "While acquisitions have not been in Apple's core DNA, the clock has struck midnight for Cupertino in our opinion and building content organically is a slow and arduous path, which highlights the clear need for Apple to do larger, strategic M&A around content over the coming year to 'double down' and drive the services flywheel," Ives wrote in a note to clients. Apple's stock has tumbled 32.7% over the past three months, while the Dow Jones industrial Average has slipped 5.8%.