|Bid||299.10 x 1000|
|Ask||299.32 x 1300|
|Day's Range||297.25 - 300.33|
|52 Week Range||231.23 - 386.80|
|Beta (3Y Monthly)||1.36|
|PE Ratio (TTM)||117.12|
|Earnings Date||Oct 14, 2019 - Oct 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||388.40|
There is a battle brewing over the upcoming drama "The Irishman". Martin Scorcese signed with Netflix to make the film and the streaming giant is reportedly looking to it give a theatrical push. But those plans are still in limbo as talks between Netflix and major theater chains have reportedly been “dragging on for months,” according to the New York Times. Yahoo Finance's Tech Editor Dan Howley joined The Final Round to discuss.
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Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. Shareholders interested in serving as lead plaintiff have until the deadlines listed to petition the court and further details about the cases can be found at the links provided.
(Bloomberg Opinion) -- Three years ago this month, Hollywood executive Peter Chernin and AT&T Inc. CEO Randall Stephenson shared a dinner on Martha’s Vineyard. Stephenson is still waiting for his dessert to arrive. It was the meal that sparked the idea for Stephenson, a practically lifelong member of the staid telephone industry, to enter the TV and film business by acquiring Time Warner, a then-$60 billion giant of the media world. After Stephenson struck the deal, he told Bloomberg News that it was Chernin who “first got me to appreciate the library that this company owns.” That library includes HBO, with hits like “Game of Thrones” and “Succession;” the Warner Bros. studio, which that year had an almost 17% share of the box office; and the rights to “Friends,” a sitcom that hasn’t aired fresh episodes in more than 15 years but has taken on new life as the Holy Grail of the streaming-TV market.In June of last year, 601 days after the companies agreed to merge, Time Warner officially became part of the Dallas-based wireless-phone carrier, defeating an attempt by the U.S. Justice Department to block the transaction. AT&T’s WarnerMedia division, as the Time Warner assets are now called, is seen as one of the biggest threats to Netflix Inc., though it doesn’t yet have a competing product to show for it. In fact, little more has come out of the WarnerMedia acquisition so far than reports of culture clashes, differing visions and high-profile personnel exits.According to the New York Post this week, some HBO staffers have been put off by the brusque management style of their new WarnerMedia boss John Stankey, a longtime AT&T executive. The Dallas-based C-suite is putting pressure on its Hollywood employees to ramp up HBO’s production slate as they coalesce around building a new streaming app named HBO Max, the strategy for which is still nebulous and seems to keep changing. They have a deadline to unveil the product to investors on Oct. 29. Later in the year, HBO Max will officially join the alphabet soup of video services already offered by AT&T:The subscription on-demand product sounds akin to Walt Disney Co.’s Disney+ and Apple Inc.’s Apple TV+, which are both launching within the next three months and gunning for Netflix Inc.’s subscriber base. They’re spending billions of dollars to fill out their apps with HBO-quality content. In theory, AT&T is sitting on a set of assets best suited to draw a wide streaming audience, with HBO’s high-quality programming, plus news, sports, comedy, cartoons and popular films. But merger integration issues and AT&T’s lack of experience in the content business pose major challenges.The price could also turn off subscribers. HBO Max is expected to charge a few dollars more than the stand-alone HBO Now app, which at $15 a month is higher than Netflix’s $13 monthly fee and more than double the $7 that Disney+ will charge. In fact, bundling Disney+, Hulu and ESPN+ will be just $13. The irony is that while Stephenson tries to transform AT&T into a media conglomerate, the wireless business that’s effectively been overshadowed by the merger is improving. It's the healthiest area of the company. Wireless accounted for 37% of AT&T’s revenue in the last 12 months, but it was nearly 50% of Ebitda, according to data compiled by Bloomberg. That cash flow is helping AT&T contend with a heavy debt load, which stood at $194 billion as of June. Wireless network performance has gotten better as new spectrum has been deployed, boosting AT&T’s image as the carriers transition to 5G service. Based on scoring by various outlets that track wireless connections, AT&T was able to crown itself America’s “fastest, best and most reliable network,” which are useful bragging rights for TV ads as the industry battles for customers. More important, AT&T is saving money through a public-private contract it won to build FirstNet, a network for first responders. Put simply, while AT&T’s workers climb towers to set up FirstNet, they’re also prepping its airwaves for 5G.These improvements haven’t yet reduced churn, or the rate at which customers are leaving AT&T, but that could be next should the wireless business stay on track. And if T-Mobile US Inc.’s takeover of Sprint Corp. overcomes state opposition (16 attorneys general have sued to block the deal), there will be one less competitor for AT&T and a chance to raise prices.AT&T’s DirecTV satellite business continues to shrink, with the company losing 946,000 video subscribers in the second quarter, including DirecTV Now customers who canceled in the wake of price hikes. That streaming service was recently renamed AT&T TV Now as the company moves away from the fading DirecTV brand. It also introduced a new service this week in certain markets called AT&T TV, which is a similar live-TV and on-demand app with various package options, but also involves using a streaming box where users can access other services they may subscribe to, such as Netflix. It became clear this week that AT&T TV and HBO Max together are at the center of Stephenson’s vision for the new AT&T.The idea must have seemed so sweet three years ago. But peering into the kitchen, it’s all still a bit hectic. He'll have to keep waiting for that dessert.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Former Italian Prime Minister Silvio Berlusconi and French billionaire Vincent Bollore are locking horns again in a battle to lead the southern European charge against Netflix Inc. Bollore, who controls media conglomerate Vivendi SA, lost the first round against Berlusconi in 2017. He’s well positioned to do better in the second. Think of it as a European version of HBO’s hit show “Succession,” where a rival takes on an aging but still powerful media baron. The two tycoons are sparring over the future of Mediaset SpA, the Italian broadcaster that Berlusconi founded and controls. The Milan-based company plans to merge with Spanish affiliate Mediaset Espana Comunicacion SA and redomicile in the Netherlands. The move will consolidate the control that Berlusconi, 82, and his family, through investment vehicle Fininvest, have by giving them extra voting rights in the new company, which will be called MediaForEurope.It’s a prospect that Bollore, 67, must be loath to countenance. Vivendi owns 29% of Mediaset and plans to oppose the deal in a shareholder vote Sept. 4 since it will further diminish its influence, Bloomberg News reported on Wednesday. While Berlusconi needs a two-thirds majority to approve the merger, Vivendi may only be able to exercise 9.6% of the voting rights because most of its shares sit in an independent trust as a result of a 2017 reprimand from the Italian regulator -- Bollore’s initial defeat by Berlusconi. Luckily Vivendi has another lever it might exercise. The deal will fall through if shareholders owning more than 180 million euros of stock exercise a withdrawal right, whereby Mediaset has to pay investors opposing the merger a set price for their shares. Even if Vivendi were only to exercise the rights on its 9.6% direct stake, that would top 300 million euros, potentially scuppering Berlusconi’s plans.It might just give Bollore the leverage he needs to realize a long-held goal: creating a southern European content champion that can better compete with Netflix. Doing so would likely mean selling the stake at a loss, but the threat could force Berlusconi back to the negotiating table to forge some sort of alliance to pool Vivendi and Mediaset content. After all, the merger of the two Mediasets in Italy and Spain has a similar intention, to create a new video content giant.That’s how Bollore ended up with a stake in Mediaset to begin with. Back in 2016, he pulled out of a deal to buy Berlusconi’s Mediaset Premium (the pay TV arm that has since been sold to Comcast Inc.’s Sky unit) for some 800 million euros, instead buying up shares in the parent firm. Since Vivendi is also the biggest shareholder in Telecom Italia SpA, Italy’s communications regulator made the French firm forfeit most of its Mediaset voting rights, saying that the dual stakes breached rules concerning concentration of media and telecoms ownership.Bollore has been left with stakes in two Italian companies worth a combined 3.2 billion euros, but over which he has little influence. He also suffered a galling defeat at the hands of activist Elliott Management Corp. for control of Telecom Italia last year. He now has an opportunity to salvage some of the plans that first got him into this mess.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Stephanie Baker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
It's August 2019, and we are on the eve of a streaming TV gold rush that will forever change the global entertainment landscape.To be sure, the linear to internet TV shift has been playing out for the past decade. But, from essentially 2010 to 2019, there have really only been three viable streaming TV services -- Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) Prime Video, and Hulu -- all of which cost a very cheap ~$10 per month.As such, contrary to what the headlines will lead you to believe, cord-cutters have been the exception. Most households in the U.S. have a Netflix subscription. Most households also still pay for cable TV. In other words, the consumption shift from linear to internet TV in the 2010's has been defined largely by consumers bundling pay TV packages and streaming services together -- not by wholesale cord-cutting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's about to change in 2020. A plethora of new streaming TV services are going to launch in late 2019 and 2020. Most of these streaming TV services project to be really good. Pretty much all of them will feature exclusive content.The introduction of these new services will truly kick-start the cord-cutting trend. By 2025, I don't think many households in the U.S. will be paying for cable TV. Instead, I think most households will bundle together several streaming packages at a cost that's similar to what they paid for cable, but with a lot more content and enhanced convenience. Deloitte agrees, saying that as early by the end of 2020, 20% of adults in developed economies will be paying for 10 digital media subscription services. * 10 Marijuana Stocks That Could See 100% Gains, If Not More What's the investment implication here? Buy streaming TV stocks. The streaming TV gold rush that will play out in the 2020's will create a rising tide that will lift most boats in this segment. Streaming TV Stocks to Buy: Netflix (NFLX)Source: Riccosta / Shutterstock.com Streaming Service(s): NetflixIndustry pioneer and leader Netflix is widely seen as a big loser with the oncoming onslaught of competitive streaming TV services from the rest of the media industry.But, this fear seems overstated to me. Netflix will be just fine. As mentioned earlier, the norm by 2025 will be multiple streaming TV subscriptions per household. Probably somewhere around four to five. An over-the-top complete TV package like YouTube TV or AT&T TV will likely be one of them, since consumers still have huge demand for live TV. That leaves three to four open spots. So, when all is said and done, all Netflix needs to be is a top three to four streaming service.Netflix will inevitably be that. The core value prop of Netflix is the original content. Original content streaming hours as a percent of total streaming hours on Netflix has risen from 14% in January 2017, to 24% in October 2017 to 37% in October 2018. Bears will say that the bulk of viewing hours are still allocated for licensed content. I'd argue that the trend implies that by the time Netflix loses its licensed content (2020/21), the percent of viewing hours dedicated to original content will be north of 50%.Thus, contrary to what the bears will have you believe, the original content strategy is working here. Netflix subscribers are watching more and more Netflix originals, and they are liking them, too (a hefty portion of Netflix originals score really well on IMDb). This strategy will continue to work for the foreseeable future. Netflix has huge data and resource advantages. They have more viewership data than anyone else in this space, and they also spend more money on content than anyone else.Net net, Netflix will be just fine in the wake of intensified streaming TV competition. The platform will continue to add subs at a record rate during the streaming TV gold rush of the early 2020's, and NFLX stock will march higher. Disney (DIS)Source: ilikeyellow / Shutterstock.com Streaming Service(s): Disney+ (launching November 2019), ESPN+ and HuluPerhaps the one company that investors and consumers are most excited about with regards to its streaming TV market entry is global media giant Disney (NYSE:DIS).Streaming TV isn't brand new for Disney. The company launched EPSN+, a streaming extension of ESPN, in 2018. The company has also long held a stake in streaming platform Hulu, and now owns the entire service. But, those two services pale in comparison to the forthcoming launch of Disney's branded streaming service and true competitor to Netflix -- Disney+.Disney+ will do really well. As stated in the Netflix segment, all Disney+ has to be is a top three to four streaming service to be successful at scale. That means all Disney+ needs is to have a top three to four content library in the streaming TV world. The platform will inevitably have that, given that Disney owns a treasure chest of content dating back several decades and that the company consistently dominates the box office every single year.Further, Disney is offering a package that bundles Disney+, ESPN+ and Hulu together. That package should do very well, because it checks off every entertainment type -- great movies with Disney+, live sports with ESPN+ and great shows with Hulu. * 11 Stocks Under $10 to Buy Now Net net, Disney's streaming TV push over the next several years will yield hugely positive results, led by Disney+ turning into one of the biggest streaming TV services in the world. As this happens, DIS stock will naturally rally as cord-cutting headwinds become old news and as profits start marching higher with a consistently robust pace. Apple (AAPL)Source: Shutterstock Streaming Service(s): Apple TV+ (launching November 2019)Another company which both investors and consumers are excited about with regards to its streaming TV market entry in late 2019 is Apple (NASDAQ:AAPL).The big story at Apple is pretty simple. Over a decade ago, the genius known as Steve Jobs came up with the iPhone. That small gadget changed the world. Ever since, Apple has sold a ton of iPhones to a ton of consumers everywhere and Apple's revenues, profits and market cap have exploded higher.But, the hardware growth narrative has largely run its course. That is, pretty much everyone who wants a smartphone, already has a smartphone. Thus, Apple is looking for alternative revenue streams to sustain growth in the absence of robust hardware growth.The biggest of these alternative revenue streams? Software. Specifically, because Apple has sold so many iPhones over the past decade-plus, the company has a huge opportunity to monetize the world's largest hardware install base through various subscription software services like a streaming music service, a curated news service, a cloud storage service so on and so forth.The most promising of these services? A streaming TV service dubbed Apple TV+, which is set to launch in November 2019.The big question marks for Apple TV+ revolve around content. Apple hasn't ever produced TV shows or movies before. But, the company has a ton of cash it can spend to attract top talent, and top talent usually makes strong content that consumers are willing to pay for.Thus, given Apple's huge resources, Apple TV+ does project as a top three to four streaming TV service at scale, meaning that Apple TV+ could be set to add tens of millions of subs over the next few years. If so, that software revenue growth bump will provide a lift to AAPL stock. AT&T (T)Source: Lester Balajadia / Shutterstock.com Streaming Service(s): AT&T TV, DirectTV Now and HBO Max (Spring 2020)The dark horse in the streaming TV gold rush is telecom and media giant AT&T (NYSE:T). But, because AT&T's streaming TV potential is presently so understated, I actually think AT&T stock could be one of the biggest winners in the streaming TV gold rush of the early 2020's.The idea here is simple. AT&T -- much like Disney -- has struggled with cord-cutting for the past several years. Those headwinds have kept a lid on AT&T stock. Also much like Disney, AT&T is attempting to remedy those headwinds with a forthcoming big push into the streaming TV arena. AT&T is set to launch both AT&T TV (an over-the-top TV package that is basically cable, but cheaper and in the streaming format) and HBO Max (an HBO-focused streaming service with additional WarnerMedia content) soon.Unlike Disney stock, though, AT&T stock has not benefited from a major uptick over the past few quarters in anticipation of this streaming TV push. This disconnect is an opportunity.Both AT&T TV and HBO Max will be huge. As more streaming services rush to the forefront, consumers will increasingly look to cut the cord. But, they will still want to watch live TV. AT&T TV will allow them to do that, at a fraction of the cost of cable. Thus, AT&T TV will become the de-facto live TV replacement in the streaming world.At the same time, HBO Max is equipped with enough content firepower from HBO and WarnerMedia to compete pound-for-pound with industry heavyweights Netflix, Amazon and Disney. * 7 Stocks the Insiders Are Buying on Sale In total, then, AT&T's streaming TV push over the next few years could be tremendously successfully. Tremendous success on the streaming TV front isn't priced into dirt-cheap AT&T stock today. As such, the potential upside in AT&T stock from the streaming TV gold rush is quite compelling. Roku (ROKU)Source: jejim / Shutterstock.com Streaming Service(s): All of them.When it comes to the streaming TV gold rush, perhaps the best way to play the trend is to buy shares of streaming device maker and service aggregator Roku (NASDAQ:ROKU).Plain and simple -- Roku is becoming the cable box of the streaming TV world. That is, the streaming TV world in 2025 will look a lot like the linear TV world of 2015. There will be a whole bunch of streaming services (which are basically just different "channels"). There will also be a ton of consumers trying to access those streaming services. Thus, there will be an increasing need for someone to step in and act like a cable box -- connecting all that demand to all the supply in seamless manner.Roku does that. They also do it better than anyone else for several reasons. First, they are content neutral, so every service can be accessed without friction and bias. Second, they have the most intuitive UI, which consumers broadly understand and love. Third, they dominate the smart TV market, with one out of every three smart TVs in the U.S. last quarter being a Roku TV. Fourth, their separate set-boxes are dirt cheap.Given these factors, Roku is not just the cable box of the streaming TV world today. But, they project to remain the cable box of the streaming TV world for a lot longer, too. As such, this platform will grow with the entire streaming TV industry for the next several years. All that growth will inevitably push ROKU stock higher in the long run.As of this writing, Luke Lango was long NFLX, AMZN, DIS, T and ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 5 Streaming Stocks to Buy for the TV Streaming Gold Rush appeared first on InvestorPlace.
Summertime is downtime for a lot of occupations - and politics is no exception. That's true of Capitol Hill, where Congress has adjourned for their August recess. And it's true of state governments, too, where "prime time" is usually spring (when the annual legislative session is typically held).But that's not to say there are no new developments. For example…right now, a movement is quietly gathering steam in one southeastern state, and it's not getting much attention in the usual media outlets. But it's building a surprising trend: Florida could be on the verge of legalizing marijuana.More often, when Florida makes the national news, it's one of those bizarre stories involving a Florida man or woman, a gator attack, or maybe some kind of altercation at a Publix grocery store.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut this month, the Florida headlines show some positive momentum for pro-legalization advocates. And none other than Rolling Stone magazine had a big feature on it this week. * 10 Marijuana Stocks to Ride High on the Farm Bill Now, like every state, Florida also has its anti-legalization advocates.Back in the 1930s, when one Florida man committed a gruesome murder and the Tampa police scapegoated "marihuana cigarettes" for it, the case was used to push marijuana prohibition nationwide.More recently, when voters were about to vote on a medical-marijuana ballot initiative in 2016, the Florida Sheriff's Association lobbied against it. The billionaire founder and CEO of Las Vegas Sands (NYSE:LVS), Sheldon Adelson, also blocked previous medical-marijuana initiatives. Governor Ron DeSantis has been hesitant to back legalization as well.But that may be starting to change. Florida has come a long way, thanks to advocates like Ricky Williams, former running back of the Miami Dolphins, who used marijuana to manage pain and still speaks at Florida cannabis conferences.Medical marijuana was approved by Florida voters in 2016 -- with 71% of the vote! -- and in March, DeSantis signed a bill allowing patients to purchase smokable marijuana for their medical needs. The younger guard, such as U.S. Rep. Matt Gaetz, tend to lean pro-legalization. And the state of Florida's only Democratic official, Agricultural Commissioner Nikki Fried, got there on a pro-legalization platform.Now, Floridians may be considering full legalization on the 2020 ballot. A group called Regulate Florida have a potential pro-legalization referendum ready for judicial review… all they need now is the signatures.Make It Legal Florida is the newest cannabis lobby group to hit the scene. On August 1, they registered as a political action committee (PAC) with Florida's election bureaucrats, and named Nick Hansen as their chair. Hansen's resume includes stints as a staffer in the Florida legislature, and new Southeast Director of Government Affairs for the California cannabis retailer MedMen (OTCMKTS:MMNFF).I'm no big fan of MedMen. Its fundamentals are bleak, with the company operating at a loss far greater than its cash and equivalents. Even worse, its former CFO alleged insider enrichment without proper disclosure.But I think MedMen is right to see opportunity in Florida -- the company is about to open 11 more stores there -- and it's definitely not alone in that. Already, with only partial legalization, Florida is on track to control 10% of the U.S. legal cannabis market by 2025. According to Leafly's 2019 Cannabis Jobs Report, Florida men and women are leading the pack -- with 9,068 cannabis jobs added in 2018, and another 9,050 expected this year!Most importantly… Florida is a major U.S. state, and would be a big "domino" to fall, paving the way to full, federal legalization. Marijuana Legalization: My "Domino Theory" of Cannabis InvestingDuring the Cold War struggle between communism and capitalism, the term "domino theory" entered the American consciousness. As the theory goes, if one small country was allowed to fall to the communists, it was sure to tap the next "domino"… which would tap the next one… and so on.While the Cold War is long over, the term "domino theory" lives on to this day. Any situation where seemingly small catalysts pave the way for larger events earns the label.In the legal marijuana business, every few months, another domino falls in the direction of widespread marijuana legalization -- and huge gains for us as investors. Thanks to the sea change in how people view marijuana, legalization all over the world is an unstoppable trend… and one of our "core" long-term themes at Investment Opportunities.In January, I was about to head to the Benzinga Cannabis Capital Conference when I first recommended MTech Acquisition to subscribers. After spending time with their top executives at the conference, I knew it was an even better opportunity than I originally thought.By June, MTech had merged with a tech company called MJ Freeway to become Akerna (NASDAQ:KERN) -- and at Investment Opportunities, the new shares earned us a 153% profit… then a 546% profit! Not bad for less than five months held.And today, I see a few OTHER big opportunities out there now. Why I Like Penny Pot Stocks Ahead of Full LegalizationPenny stocks often get a bad rap. But they are actually critical to the global marketplace. The world needs tiny companies -- just as much as bigger ones. They're the job creators. The innovators. And they're the places to look for the biggest gains once marijuana legalization occurs.As an investor, if you're looking for the next Netflix (NASDAQ:NFLX) or Apple (NASDAQ:AAPL), this is where you'll find it.You just want to be VERY choosy about which ones you buy.I use strict guidelines to pick penny stocks -- and I tell you all about them in this presentation.When I used my five-step evaluation process on the marijuana market, I identified four stocks that are worth buying now.During my presentation, you'll have the opportunity to secure a free copy of America's Top 4 Marijuana Moonshot Stocks… I'll even give you a fifth bonus name just for fun.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Marijuana Legalization: The Next "Domino" May Be About to Fall appeared first on InvestorPlace.
The first in the slate of content Netflix has ordered from former US President Barack Obama and former First Lady Michelle Obama has arrived.
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Netflix, Inc. ("Netflix" or the "Company") (NFLX) of the September 20, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. If you invested in Netflix stock or options between April 17, 2019 and July 17, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/NFLX. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
NEW YORK, NY / ACCESSWIRE / August 21, 2019 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. To determine ...
Disney (NYSE:DIS) stock is treading water. Shares now trade around $135, down from as high as $147.15 in late July. The recent earnings miss calls into question the current valuation of Disney stock. But with the launch of Disney+ around the corner, is now the time to buy DIS? Disney stock continues to trade at a premium compared to its peers, but offers material upside in the long-term. Let's take a deep dive and see what's the verdict with Disney stock.Source: Shutterstock Recent Performance of DISDisney announced earnings on Aug. 6. DIS saw earnings per share fall 59% year-over-year. Much of this decline was due to the integration of recent acquisitions 21st Century Fox and Hulu. Excluding these items (amortization and impairment charges on intangible assets), EPS fell only 28%. The integration of these assets offers long-term upside. But in the meantime, integrating these operations is a work-in-progress.21st Century Fox's film division has under-performed. Recent release "Dark Phoenix" was a box office bomb. But Disney's film division continues to be strong. "Avengers: Endgame," "Aladdin" and "Toy Story 4" met expectations. For the third quarter, Disney should see additional strong performance in the film division. Disney's July release of "The Lion King" has already generated over $1.4 billion at the worldwide box office. As I stated in a previous article, the Magic Kingdom continues to be "king of content."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Through Aug. 18, Disney's film distribution arm, Buena Vista, had 37.1% of the box office market share for 2019. This is leaps-and-bounds ahead of number two, Comcast's (NASDAQ:CMCSA) Universal. Universal's year-to-date market share is just 13.8%. Add in 20th Century Fox's box office take, and Disney has more than 40% market share. Theatrical revenue is a small component of today's film business. But it is a strong indicator of the residual value of Disney's film assets. In the more lucrative television and streaming markets, Disney's content is king. This mass appeal will translate well when Disney launches the anticipated Disney+ service later this year. Full Steam Ahead for Disney+Disney's new streaming service goes live in November. Disney+ could disrupt Netflix's (NASDAQ:NFLX) current streaming dominance. As InvestorPlace's James Brumley wrote last week, the company will bundle Disney+, ESPN+ and Hulu in a $12.99/month package, the same price point as Netflix.As I mentioned in my recent Netflix analysis, NFLX's U.S. subscriber base is falling. Content producers are demanding higher licensing fees. In addition, Comcast's NBCUniversal and AT&T's (NYSE:T) WarnerMedia are hoarding properties such as "The Office" and "Friends" for their respective streaming apps. Netflix believes it can counter this with billions invested in original programming. But, Netflix has not yet created a show with the matched popularity of its licensed content. On the other hand, Disney has an impressive library, thanks not just to its own content, but to Fox's extensive film and television library as well.With Disney+ around the corner, should investors nix NFLX and stock up on DIS? Let's take a look at valuation, and see if the opportunity justifies the price. Valuation: Is Opportunity Worth the Current Price?DIS stock currently trades at a forward price-to-earnings ratio of 23. The company's Enterprise Value/EBITDA ratio is 18.7. This is a substantial premium to its big media peers: * AT&T: Forward P/E of 9.7, EV/EBITDA of 8.2 * CBS (NYSE:CBS): Forward P/E of 7, EV/EBITDA of 8.6 * Comcast: Forward P/E of 13, EV/EBITDA of 9.6 * Viacom (NYSE:VIA, NYSE:VIAB): Forward P/E of 6.2, EV/EBITDA of 6.3But as I have mentioned before, comparing DIS stock to its peers is not apples-to-apples. AT&T and Comcast are both telecom companies with attached media businesses. CBS and Viacom (which are going to merge) face headwinds in the age of streaming. But compared to the valuation of NFLX, Disney stock is a clear bargain. NFLX trades at a forward P/E of 92.4, and an EV/EBITDA ratio of 52.8. Compared to NFLX, Disney is the smarter play. With DIS stock, you get a highly profitable media conglomerate with potential upside from streaming. Bottom Line: Wait to Buy DIS StockDisney stock should continue to win in the long term. If the upcoming Disney+ platform performs as expected, the company should see continued growth, even if their legacy cable networks business sees long-term decline. However, there are negative factors to consider. While it trades at a lower valuation than NFLX, Disney shares trade at a substantial premium to its big media peers. A recent claim that Disney overstated its theme park revenue could be a potential risk. But this recent news item is still playing out.The launch of Disney+ is a long-term play. Profitability is years away. In the meantime, a market correction could impact the valuation of DIS stock. Coupled with short-term growing pains, DIS stock could be a bargain sometime down the road. For now, wait on the sidelines as new developments factor into the stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Disney May Disrupt Netflix, But Take Your Time With DIS Stock appeared first on InvestorPlace.
No Chinese stock excites traders like Iqiyi (NASDSAQ:IQ).Source: Faizal Ramli / Shutterstock.com Iqiyi (pronounced Ee-KWEE-kwi) is a streaming video company focused on people whose primary device is a mobile phone. Its shows are short and highly interactive, perfect for a young worker on their bus ride or coffee break. It is very different from Netflix (NASDAQ:NFLX), although both have intense, passionate CEOs.Iqiyi is a partial spin-off of Baidu (NASDAQ:BIDU), a search engine and cloud that's the weakest of that country's three "Cloud Emperors." Both Iqiyi and Baidu are growing, but Iqiyi's losses remain ahead of expectations.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill For the quarter ending in June Iqiyi lost $339 million, 49 cents per share fully diluted, on revenue of $1 billion. Iqiyi lost almost the same amount during last year's second quarter, but with 33% less revenue. The numbers, and a ton of call options from traders betting on a different result, caused an overnight sell-off of 9%, but IQ stock quickly recovered. Iqiyi Is Not Like NetflixInvestors on Aug. 21 are going to read all about the drop, and less about the recovery.The recovery is based on the paid membership. Subscribers pay just $3 per month. Members also see ads, which they don't do on Netflix. Since IQ users are members these ads can be narrowly targeted.I have written about IQiyi before and questioned its business model. I also warned against buying its sharp rise this spring (which wasn't sustained).More recently, I have emphasized the difference between Iqiyi's model and that of Netflix. It's now No. 1 in the Chinese market, ahead of Tencent (OTCMKTS:TCEHY) and Alibaba (NASDAQ:BABA), whose parent companies are much bigger. Iqiyi Is Like NetflixBut in some ways Iqiyi is a lot like Netflix.As founder and CEO Tim Gong Yu noted in the company's recent earnings call, Iqiyi creates programs in-house that are tailored to its unique audiences, and spends money ahead of the market.Its earliest hits were reality games like "The Rap of China," "The Big Band," and "CZR," all variations of "American Idol." It is now paying more for scripted dramas like "The Thunder," a detective show, "Go Go Squid," a romantic comedy, and "Love and Destiny," a costume epic. Long-term liabilities have doubled, most of them covered by convertible notes.Iqiyi stock was also hit during its most recent quarter by an industry-wide slowdown in the advertising market. Advertising revenue fell 16%. Its subscriber growth depends on getting better wireless infrastructure in smaller Chinese cities. It also needs to keep customers once they get them, reducing churn and marketing costs per subscriber. Iqiyi is hugely popular among young people in China's biggest cities. Gong Yu admitted the company needs to raise its game among older people and those in smaller markets.Unlike Netflix, Iqiyi also has a games business. It recently acquired a game maker called Skymoons. The hope is that Skymoons programmers can deliver games based on Iqiyi shows, and game revenue was up 82% year over year. The Bottom Line on IQ StockIqiyi is still a speculative stock, but it does have a compelling story.Bulls will note that Iqiyi is still growing its customer base and that it has several different ways to monetize - memberships, advertising and gaming services. They will point to CEO Tim Gong Yu, who has his company ahead of rivals backed by much bigger companies. They will brush off losses as the price of growth, over 27% year-over-year for the period from January through June.Bears will question the China story, point to the abundant competition, and note that Iqiyi stock has yet to narrow its losses.Iqiyi is a game for younger, hungrier investors than me. Buy if you're young and can afford a loss, watch it closely, and your patience may be rewarded.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Iqiyi: Like Netflix, but Not Like Netflix appeared first on InvestorPlace.
NEW YORK, NY / ACCESSWIRE / August 21, 2019 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies. Shareholders who purchased shares in the following companies during the dates listed are encouraged to contact the firm regarding possible Lead Plaintiff appointment. A class action has commenced on behalf of certain shareholders in Diebold Nixdorf, Incorporated.