The Walt Disney Co $ 142.77 1.7 (1.21%)
DIS News and Headlines - The Walt Disney Co
Alan Fournier (Trades, Portfolio), leader of Pennant Capital Management, disclosed this week that his firm's top five trades during the third quarter included increased bets in the SPDR Gold Trust (GLD) exchange-traded fund and Walt Disney Co. (DIS), new positions in Comcast Corp. (CMSCA) and General Motors Co. (GM) and the closure of its Johnson & Johnson (JNJ) position.
Prior to founding Pennant Capital, Fournier managed global equity investments at David Tepper (Trades, Portfolio)'s Appaloosa Management. Fournier started the Summit, New Jersey-based firm in 2001 with $12 million from Tepper and converted the firm
Tudor Investment Corp, managed by billionaire investor Paul Tudor Jones (Trades, Portfolio), is known for successfully identifying macro themes and investing in companies that would benefit from the expected changes in operating conditions. Although the hedge fund did not meet performance expectations in the recent past, Tudor has a celebrated history that spans over four decades in which he has beaten the market more often than not.
The third-quarter 13-F filing of Tudor Investment reveals the fund has scooped up 44,160 shares in the Walt Disney Company (DIS). The entertainment giant took a few
Walt Disney Co. (DIS) is transition from a content supplier for Netflix Inc. (NFLX) to a formidable competitor that could limit the streaming entertainment giant's pricing power, in my opinion.
For years, Disney was part of the solution to Netflix's problem. It provided top-rated content that helped Netflix dominate the movie streaming market at home and abroad. Statista.com noted that in the third quarter of 2020, Netflix had 73.08 million U.S. subscribers and 106 million international subscribers.
A rapid subscriber expansion has helped Netflix beat Disney in key financial metrics and made the streaming giant a hot momentum play on
George Soros (Trades, Portfolio) is known for his uncanny ability to identify market trends earlier than many of his rivals. Over the course of his investment career, the guru has made many bold moves, such as shorting currencies, when the world was against him. In the majority of such instances, Soros came out on top and proved time and again that he has what it takes to beat the market.
The U.S. economy is setting up for a strong comeback on the back of positive news coming from the health care sector regarding a
On Thursday, The Walt Disney Co. (DIS) reported results for the fourth quarter of fiscal 2020. For the year, revenue fell 6% to $65.4 billion, with a meaningful decline in Parks, Experiences and Products as a result of the pandemic offset by growth at Media Networks, primarily due to the inclusion of the assets acquired from 21st Century Fox. Segment operating income for the year declined 45% to $8.1 billion, with an improvement at Media Networks (up 21% to $9 billion) offset by the results in all other segments. Despite the significant reduction in profitability in 2020, Mr. Market has
The Dow Jones Industrial Average closed at 29,080.17 on Thursday with a loss of 317.46 points or -1.08%. The S&P 500 closed at 3,537.01 for a loss of 35.65 points or -1.00%. The Nasdaq Composite closed at 11,709.59 for a loss of 76.84 points or -0.65%. The VIX Volatility Index was higher at 25.35 for a gain of 1.90 points or 8.10%.
Thursday's market movers
U.S. indexes ended lower Thursday with several concerning coronavirus headlines. New U.S. coronavirus cases were over 100,000 for a ninth day. Fed Chair Jerome Powell also said a vaccine may not be the immediate help
On Thursday, shares of The Walt Disney Co. (DIS) soared as much as 6% in aftermarket trading on the heels of reporting a loss per share that was less drastic than analysts feared, driven by subscription growth that outshined management's expectations.
For the three months ending Oct. 3, the Burbank, California-based entertainment giant reported a net loss of 20 cents per share excluding items affecting comparability, which was better than the expected net loss of 71 cents per share according to Refinitiv estimates.
Company smashes Disney+ subscription estimates in first year since launch
Shareholders of Walt Disney Co. (DIS) responded very positively to last month's announcement that the media giant was reorganizing its businesses to focus more on its streaming service, Disney+. This is unsurprising - Disney possesses a huge library of content, which includes some of the most valuable intellectual property, like the Star Wars and Marvel franchises, as well as a back catalog of animated films that are beloved by billions of people. Here's how this announcement might change investor sentiment toward the company.
A clear advantage in the streaming wars
Disney+ couldn't have come at a better time.
We came up with a theory many years ago to address how important psychology is to owning common stocks. We found that the risks go up in a stock market, or in an individual stock, when a "well-known fact" (WKF) was acted on in the extreme. It is a leading cause of stock market failure for professional and individual investors alike. In our world, a well-known fact is a body of economic information which is known to everyone, has been acted on by everyone and has attracted the most speculative investors (i.e., investors using borrowed money or options).
Digging through Berkshire Hathaway's (BRK.A) (BRK.B) third-quarter 10-Q form, I uncovered some interesting insights into Warren Buffett (Trades, Portfolio)'s stock trading activity this year. Of course, we will not know the details of his trades until the 13F is released in the upcoming weeks, but the 10-Q can still give us a bird's-eye view of some information.
The Oracle of Omaha has said many times in the past that when he buys a security, it's for life, but that has not been the case in 2020. This year, Berkshire has sold $28.6 billion of equity securities in
The easier a business can be predicted, the higher the likelihood a buy and hold investment strategy will be fruitful. Such businesses are usually characterized by a steady record of revenue per share and Ebitda per share, which is often associated with a strong long-term performance based on a 10-year study that GuruFocus conducted for the period from 1998 to 2008.
In light of the above, value investors may want to consider the following three stocks, as they represent U.S. listed equities in companies that GuruFocus has given a high rating for business predictability.
The first company
Fox Corp. (FOX)(FOXA), which was formed in early 2018 following The Walt Disney Co.'s (DIS) acquisition of the majority of the assets owned by 21st Century Fox, reported results for the first quarter of fiscal 2021 on Tuesday. Revenue increased 2% to $2.72 billion, with 10% growth in affiliate fees offset by mid-single-digit declines in advertising and other revenue (primarily due to the absence of sports sub-licensing revenue). This led to a 36% increase in adjusted Ebitda to $1.17 billion as well as a 42% increase in adjusted earnings per share (but as I'll explain shortly, the outsized growth in
Headquartered in Austin, Texas, Yacktman Asset Management (Trades, Portfolio) pursues long-term capital appreciation using a growth and value-based strategy. Specifically, the firm looks to purchase the stocks of business that have the following three characteristics: good business (high market share, high cash return on tangible assets, unique franchise characteristics, etc.), shareholder-oriented management (allocates capital wisely, does not overcompensate executives, etc.) and low purchase price. Stephen Yacktman, who joined the firm in 1993, is
The fund reduced its position in Accenture PLC (ACN) by 35.61%. The trade had an impact of -1% on the portfolio.
The IT services firm has a market cap of $145.74 billion and an enterprise value of $141.54 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 33.09% and return on assets of 15.5%
Telecom behemoth AT&T (T) has recently been in the news for a better-than-expected quarterly result. The company managed to rope in a substantial base of subscribers in the past quarter, including strong additions to its fiber network and its media streaming services.
With its current level of dividend payouts, the stock is providing a yield of more than 7% and has become a very attractive bet for yield players. However, AT&T's struggles with respect to its entertainment segment are far from over, and whether the management will be able to sustain its massive dividend while pouring cash into the expansion
Netflix (NFLX) released its third-quarter results on Oct. 20 after the market closed. The streaming giant's earnings missed projections due to a slowdown in subscriber additions after witnessing outpaced subscriber growth in the first two quarters of 2020. Revenue, however, surpassed expectations.
Performance at a glance
The company posted diluted earnings per share of $1.74, which reflected a gain of 18% from the same quarter last year. Revenue of $6.44 billion climbed 23% on a year-over-year basis. Wall Street had predicted EPS of $2.14 on $6.38 billion in revenue.
In a letter to shareholders, the company commented on how Covid-19
Netflix (NFLX)'s results are one of the most eagerly anticipated events of the earnings season, not just for technology investors but for the market as a whole. The global streaming giant's performance acts as a barometer for the growth in the online streaming industry.
The recent results were below the sky-high market expectations. After a phenomenal start to the financial year backed by subscriber-growth-related tailwinds caused by the Covid-19 pandemic, Netflix's growth in the most recent quarter has come back to realistic levels, disappointing the market. However, the slow production activity during the year has resulted in the company having
U.S. stocks were in the green on Wednesday morning. The producer price index climbed a seasonally adjusted 0.4% in September, according to the Labor Department, topping analyst estimates. The Dow advanced more than 28 points, or 0.08%, to 28,703, while the S&P 500 index rose 0.25% to 3,520 and the Nasdaq Composite Index was up 0.44%, to 11,915.
- Waters Corp (WAT) +7.1%
- Walt Disney Co (DIS) +3.1%
- Autozone Inc (AZO) +1.8%
- EOG Resources Inc (EOG) +1.1%
- Royal Caribbean Cruises Ltd (RCL) -13.2%
- Norwegian Cruise Line Holdings Ltd (NCLH) -8.4%
- Fastenal (FAST)
U.S. stocks were in the red on Tuesday morning. The Dow retreated more than 125 points, or 0.42%, to 28,724, while the S&P 500 index fell 0.43% to 3,519 and the Nasdaq Composite Index was down 0.29%, to 11,841.
- Waters Corp (WAT) +3.6%
- Walt Disney Co (DIS) +3.3%
- EOG Resources Inc (EOG) +4.6%
- Clorox Co (CLX) +2.3%
- Autozone Inc (AZO) +1.6%
- Royal Caribbean Cruises Ltd (RCL) -10.6%
- Norwegian Cruise Line Holdings Ltd (NCLH) -6.5%
- Carnival Corp (CCL) -5.6%
- Vulcan Materials Co (VMC) -3.6%
- Martin Marietta Materials Inc (MLM) -3.8%
On Wednesday, activist investor Dan Loeb of Third Point sent a six-page letter to Bob Chapek, the CEO of The Walt Disney Company (DIS). In his letter, Mr. Loeb made four key points.
His first point has to do with the company's dividend:
"To further capitalize on this transformational opportunity, we believe the company should permanently suspend its $3 billion annual dividend and redirect this capital entirely into content production and acquisition for Disney's DTC businesses, centered around Disney+."
As a reminder, the company suspended its dividend in May when the impact of the pandemic, most notably in