Disney's most recent trend suggests a bearish bias. One trading opportunity on Disney is a Bear Call Spread using a strike $139.00 short call and a strike $144.00 long call offers a potential 9.89% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $139.00 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $144.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Disney is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Disney is bearish.
The RSI indicator is at 53.37 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Disney
Apple Event: New Offerings Leverage the Little-Known Future of Tech
Thu, 12 Sep 2019 21:22:00 +0000
In a week that was otherwise light on market news, Apple (NASDAQ:AAPL) lit a fire under large-cap tech stocks Tuesday with its livestream. This Apple event is the annual ritual where Tim Cook dons the traditional dark sweater, gets onstage at the "Steve Jobs Theater," and presents the new product lineup.We saw the new hardware: the Apple Watch Series 5…the 7th generation iPad…and of course the iPhone 11, now with two or even three rear cameras!But Apple also had a little surprise for its competitors in the streaming media market:InvestorPlace – Stock Market News, Stock Advice & Trading TipsThe new Apple TV+ will launch Nov. 1, two weeks before Disney+…and it will be quite affordable. At $4.99 per month, it'll undercut everyone on price.This was a direct shot at Netflix (NASDAQ:NFLX), which starts at $8.99 per month these days, and The Walt Disney Co (NYSE:DIS), which currently charges $5.99 per month for Hulu and will offer Disney+ for $6.99. (Or you can get it bundled with ESPN+ and Hulu Original for $12.99 per month.) * 10 Battered Tech Stocks to Buy Now This is a pretty aggressive strategy to help Apple TV+ compete in a well-established space where Netflix (for example) already has over 150 million subscribers and nearly 1,800 TV shows and 4,000 movies.Judging by the market reaction to the Apple event, Apple TV+ is a contender. On an otherwise flat trading day, AAPL stock gained 1.2%, while NFLX, DIS and especially Roku (NASDAQ:ROKU) sold off hard. Below you can see how things played out after the livestream of the Apple event began at 1 p.m. EST:Investors were perhaps wise to be selling DIS. Sure, sales are growing – and perhaps Disney+ preorders are helping, along with major moneymakers like "Avengers: Endgame." But operating margins certainly aren't. Disney's earnings stats are dismal as well, with analysts revising their projections lower. Here is the full Report Card for DIS from my Portfolio Grader:Netflix's advantage over the likes of Disney is that (like Apple) it is an innovator. It totally disrupted its market with a game-changing product, and today it invests heavily in original content. Meanwhile, Walt Disney Pictures is just churning out remake after remake. At Accelerated Profits we went with NFLX stock and cashed out a 122% profit, regardless of Disney+.The media market has become ultra-competitive, and the innovators will win out. Ultimately, as I've made clear in Growth Investor, we're a consumer-driven economy – and today's consumers want unique, high-quality content.It's telling that the reaction to the Apple event had more to do with content services than hardware: The new iPhone 11 with its slow-motion selfies ("slofies") got little fanfare, and ROKU stock has been outright rejected since Tuesday.Now, Roku still has the lead, similar to how Netflix got a big lead from being installed on new TVs. But I think Apple TV will succeed in capturing market share and take the 2 spot. Apple fanatics can now forego the Roku media player – but still get that same convenience: They can get a year of Apple TV+ for free by buying an Apple TV (or any other) device…and they can stream Apple TV+ on their phones.In fact, Apple has been transitioning its focus from Products to Services for quite some time.While iPhone is still its largest sales category, Apple's Services segment contributes roughly twice as much as the wearables, the Macs and even the iPads. Naturally, Apple wants to keep that gravy train rolling by offering Apple TV+ to boost revenue further (and make earnings more predictable). Services is already what's driving Apple's revenue growth.Even Apple's latest major innovation – the Apple Watch – may soon become a vehicle for this trend…if Tuesday's livestream is any indication. The Other Key Takeaway from The Big Apple EventThe hardware on the Apple Watch is pretty impressive. With last year's Series 4, Apple added a heart sensor that lets you take your own electrocardiogram (ECG/EKG); the Apple Watch will automatically notify you if there's anything unusual. Now with the Series 5, there's an always-on display – which you can see from almost any angle – and a built-in compass. The Apple Watch can place an emergency call for you in 150 countries, now, too.But most of the focus with the Apple Watch was on your quality of life. In this year's livestream Apple event, the presentation of the iPhone 11 was all about what it can do. But with the Apple Watch, it was what it can do for you.Tim Cook kicked it off with testimonial videos: We heard from an elderly man whose Apple Watch automatically dialed 911 (and his wife) during a heart attack…plus stories from young parents, in which their EKG readings and the Watch's baby-monitor app featured prominently.In this shot from the presentation, you see it's all about the apps as well:Source: Apple Special Event September 10, 2019 Now that you can track just about anything for your health… what Apple is really selling you here is your own data.From workouts to your sleep cycles, reproductive health, and even meditation, the amount of data these wearables can collect is staggering. And to fulfill their potential, the apps need "the mother of all technologies."Up until now, technologies have certainly made our lives easier and more efficient…but with a lot of room for human error. People trip over cords, spill their coffee, and get tired.Artificial intelligence (A.I.) does not.If A.I. sounds futuristic, well then, the future is already here. If you use apps like Netflix, TurboTax, QuickBooks, Zillow (NASDAQ:Z), or even an email spam filter, then A.I. is already helping your day run more smoothly and efficiently. And as scientists find even more applications for artificial intelligence – from healthcare to retail to self-driving cars – it's incredible to imagine how much data will be involved.To create A.I. programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every A.I. system.So any one company that can help with customers' data issues – is the one company that's most worth investing in.You don't need to be an A.I. expert to take part. I'll tell you everything you need to know, as well as my buy recommendation, in Growth Investor. My 1 stock for the A.I. trend is still under my buy limit price — so you'll want to sign up now; that way, you can get in while you can still do so cheaply.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Apple Event: New Offerings Leverage the Little-Known Future of Tech appeared first on InvestorPlace.
Disney+ launches free trial at doorstep of Netflix's European headquarters
Thu, 12 Sep 2019 21:04:40 +0000
A test version of Disney+ has gone live in the Netherlands, where consumers can download the streaming service and view content on it for free.
Dow Jones Today: Maybe We’re Getting Somewhere
Thu, 12 Sep 2019 20:21:00 +0000
Stocks traded higher again Wednesday with the Dow Jones Industrial Average positioned for a seventh consecutive winning day as the European Central Bank (ECB) delved further into easy monetary, and amid news that trade tensions between the U.S. and China continue to thaw.Source: ymgerman / Shutterstock.com Given President Donald Trump's Twitter (NYSE:TWTR) volatility, it's wise to approach good trade news with some caution, but over the course of this week, some green shoots have emerged.The White House pledge to push back some proposed tariffs on Chinese goods while China is promising to rollback some levies on U.S. imports in conjunction with upping purchases of American farm products.InvestorPlace – Stock Market News, Stock Advice & Trading TipsToday, reports emerged that the White House has discussed offering some form of a limited trade pact to China. Whether or not that agreement is accepted remains to be seen, but the overarching issue is that both sides, at least for now, are showing willingness to work on trade deals. * 10 Battered Tech Stocks to Buy Now In Europe, the ECB cut its benchmark lending rate to -0.5% and pledged to buy $22 billion worth of euro-denominated bonds per month.Those headlines got us to the Nasdaq Composite gaining 0.30% today while the S&P 500 jumped 0.29%. The Dow Jones Industrial Average tacked on 0.17%. In late trading, 23 of the 30 Dow stocks, one of the better ratios this week, were trading higher. First, the Bad NewsYes, there were some glum performances among Dow stocks today. For example, Caterpillar (NYSE:CAT) slipped about 1% after Wells Fargo downgraded the construction machinery maker to "market perform" from "outperform." The bank also pared its price target on that Dow stock to $143 from $150."U.S. construction equipment demand is at or near peak, which will put downward pressure on earnings power," said Wells Fargo.On a technical basis, Caterpillar recently bumped into some overhead resistance and looking at the chart, the shares look primed to pull back over the near-term.Speaking of analyst chatter hurting Dow stocks, Walgreens Boots Alliance (NASDAQ:WBA) was the worst-performing Dow stock today, sliding over 4% after Deutsche Bank analyst George Hill initiated coverage of the stock with a "sell" rating.Hill had a tepid take on Dow stock UnitedHealth (NYSE:UNH), starting coverage of that laggard with a "hold" rating. Shares of UNH also finished lower today. Bright Spots on the DowVisa (NYSE:V) was the best-performing Dow stock today, adding 1.71%. It looks like buyers stepped into the name after the shares pulled back following a record close last Friday. The stock had been nearly 4% over the past several days.Shares of Walmart (NYSE:WMT) added nearly 1% after the largest U.S. retailer unveiled an expansion to its grocery delivering service. Priced at $98 annually, or $82 less per year than the fee on Amazon Fresh.Whether its streaming entertainment or food delivery, pricing power matters. Companies that can offer it without disrupting the long case for their stocks usually get a boost from investors. Walmart plans to expand the new grocery delivery service to 200 metro areas across the country.Walt Disney (NYSE:DIS) bounced back today as some of the concerns about Apple's (NASDAQ:AAPL) streaming effort ebbed.Disney has its own streaming plans, Disney +, and Credit Suisse says that if that offering can attract 10 million subscribers by the end of this year, that could bring double-digit upside for the stock. DJIA Bottom LineCentral banks around the world are acting to prop up economies that are in far worse shape than the U.S., and it's likely the Federal Reserve will follow suit to avoid having to act when it's too late.In comments made in Chicago today, former Federal Reserve Chair Janet Yellen affirmed that the Fed stands at the ready to shore up the world's largest economy, which she still views as solid. However, she doesn't believe the central bank will follow the ECB playbook of negative rates.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Dow Jones Today: Maybe We're Getting Somewhere appeared first on InvestorPlace.
Disney Stock Is Not in Danger from Apple TV+’s Discount Pricing
Thu, 12 Sep 2019 18:26:19 +0000
If Disney (NYSE:DIS) wants to claim that they're a victim of circumstances, I won't necessarily disagree with them. In recent years, the Magic Kingdom has really flexed its muscle. With key (albeit expensive) acquisitions, an investment in Disney stock levers you to perhaps the most valuable entertainment franchises. Moreover, their streaming ambitions, resulting in the Disney+ platform, is a shot across the bow.Source: spiderman777 / Shutterstock.com However, consumer electronics giant Apple (NASDAQ:AAPL) has now returned the favor. In its highly anticipated iPhone 11 event, Apple announced their pricing strategy for their own streaming service. Called Apple TV+, the underlying company shocked observers with its $4.99 per month introductory pricing. That figure puts it well below every other streaming competitor, which includes top names like Netflix (NASDAQ:NFLX) and AT&T (NYSE:T).On cue, the markets dished out some punishment. DIS stock absorbed a sizable blow on Tuesday following the announcement. On the following midweek session, Disney stock closed up less than 0.3%. NFLX shares followed a similar pattern.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThe one notable exception to the streaming fallout was AT&T. However, its shares moved higher on an activist investor taking a large stake in the firm; thus, it had nothing to do with the headwinds impacting DIS stock. * 10 Stocks to Sell in Market-Cursed September On the surface, things don't look too hot for the House of Mouse. When management launched their Disney+ pricing, it was clear they had Netflix in mind. With an introductory price of only $7 a month, it undercut Netflix's offering by nearly half. That move underlined some of the reasons why people bought Disney stock.But with Apple essentially doing the same, should stakeholders worry? I'd say no, and here's why: Contextually, DIS Stock Is a Better Streaming Investment than AppleThere's an old saying that "you get what you pay for." That really applies to DIS stock and its comparison to AAPL regarding streaming.While Apple's pricing can't be beat on a nominal basis, on a contextual basis, it's truly nothing special. When you drill into the details, Apple TV+ is designed to drive interest in the iPhone 11. As you know, smartphones have become incredibly competitive and likely saturated.Put another way, Apple TV+ and Disney+ are apples and oranges, no pun intended. That's very good news for Disney stock, at least specific to the streaming narrative.Unlike this arena's powerhouses, Apple TV+ won't stream licensed programs from third parties. When Apple TV+ launches, it will have nine original shows. Granted, they will feature some immediately recognizable Hollywood A-listers, such as Jennifer Aniston or Jason Momoa. But I can almost guarantee you this: these original shows won't compete with Disney's library of content, thus providing meaningful cover for DIS stock.Interestingly, though, Apple is giving a one-year free membership for Apple TV+ when customers buy select new products. That means Apple should have a massive streaming base in just a few months. And theoretically, that hurts Disney stock.But the reality is that very few people will elect to keep Apple TV+ once the freebie membership is over. Moreover, with added content, Apple will likely increase pricing, making the whole proposition even more unfavorable to customers.I think Apple might be underestimating the content power that both Netflix and Disney leverage. The former has won multiple industry awards, while the latter has lucrative franchises like "Star Wars."With the limited content that you get from Apple TV+, the better deal is really Disney or Netflix. Should Investors Buy Disney Stock?But before you dive into Disney stock, I think investors should consider the present environment. Of course, one of the dark clouds of the markets is the U.S.-China trade war. With a deal unlikely in the nearer term, the company faces tourism risks that could impact its resort business.Plus, the broader markets haven't moved in a convincing fashion. Yes, the benchmark indices have put together multiple consecutive bullish sessions. But Wall Street is starting to lose credibility with its seesawing price action. That might cap interest for buying Disney stock near all-time highs.That said, if DIS stock dips lower, perhaps to its 200-day moving average, I would be very interested. Companies associated with the entertainment industry have a viable case for surviving – and sometimes thriving – in a recession.As of this writing, Josh Enomoto is long T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Disney Stock Is Not in Danger from Apple TV+as Discount Pricing appeared first on InvestorPlace.
WarnerMedia Enlists Filmmaker J.J. Abrams in Its War on Netflix
Thu, 12 Sep 2019 16:07:56 +0000
(Bloomberg) — AT&T Inc.’s WarnerMedia reached a production deal with superstar director J.J. Abrams, locking in one of Hollywood’s hottest filmmakers as it prepares to do battle with streaming services from Netflix Inc. and Walt Disney Co.Abrams, whose film credits include recent versions of “Star Wars” and “Star Trek,” will create original TV shows, movies and games for the studio through 2024, according to a statement Thursday. Financial terms weren’t revealed.The signing highlights the increasingly fierce competition for talent among Hollywood’s biggest media companies, including newer players like Netflix and Amazon.com Inc. Last year, WarnerMedia signed Greg Berlanti, producer of shows like “Riverdale” and “The Flash,” with a contract topping $300 million.The New York Times said in June that Abrams was likely to get a $500 million deal. But the contract was ultimately worth closer to $250 million, the Hollywood Reporter said on Thursday.The WarnerMedia pact builds on a TV relationship with Warner Bros. that began in 2006. But Abrams’s production company, Bad Robot, will honor its existing obligations to Paramount Pictures.Talent BattleOver the past couple years, Netflix has managed to cinch deals with top TV producers including Ryan Murphy and Shonda Rhimes. That’s given leverage to big-name filmmakers and showrunners, especially as studios need more content than ever.Hollywood’s legacy companies are pushing into streaming to survive in an age when traditional pay-TV customers are canceling service for cheaper online alternatives. WarnerMedia, Disney and Comcast Corp.’s NBCUniversal all offer or plan to offer paid streaming services.Abrams has directed some of Hollywood’s highest-profile films, including “Star Wars: The Force Awakens,” which took in $2.07 billion in worldwide ticket sales. His next “Star Wars” movie, “The Rise of Skywalker,” is due in theaters on Dec. 20.To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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