Disney Streaming Negating COVID-19 Impact

Disney’s impressive streaming numbers have thus far negated the impact that COVID-19 has had on its other business segments, mainly its parks. The Walt Disney Company (DIS) has had to shutter all of its worldwide Parks and Resorts, and ESPN has been hit with the cancellation of virtually all sports worldwide. Advertising revenue coming through its media properties has been hit as companies scale back ad spending. All of its movie studio productions have been halted, and movie releases are postponed. Despite the COVID-19 headwinds, streaming initiatives have been major growth catalysts for the company. Disney+’ growth in its subscriber base has shifted the conversation from COVID-19 to a durable and sustainable recurring revenue streaming model. This temporary bright spot, in conjunction with the optimism of its Park and Resorts coming back online, has been a perfect combination as of late. Disney+ has racked up 57.75 million paid subscribers, Hulu has 35.5 million paid subscribers, and ESPN+ has 8.5 million paid subscribers. Disney now has over 100 million paid streaming subscribers across its platforms. Disney+ has been wildly successful via unleashing all of its content (Marvel, Star Wars, Disney, and Pixar) in what has become a formidable competitor in the ever-expanding streaming wars domestically and internationally. Hence the tug-of-war on Wall Street between COVID-19 impacts versus the success of its streaming initiatives. Thus far, its streaming success has changed the narrative as its stock is approaching highs not seen since February. Disney is a compelling hold as its legacy business segments get back on track in conjunction with these successful streaming initiatives.

Long Game

Disney’s business segments will regain their health as COVID-19 subsides worldwide and/or there’s a vaccine approved. Parks will reopen as seen with Shanghai, Hong Kong, and Disney World. Inevitably, movie productions will resume, movie theaters and resorts will reopen, and sports will play-on. The resumption of all of these activities will feed into Disney’s legacy businesses in conjunction with its streaming successes. Disney continues to dominate the box office year after year with a long pipeline of blockbusters in the queue. Its Parks and Resorts continue to be a growth avenue with tremendous pricing power outside of COVID-19. Disney is going all-in on the streaming front and acquired full ownership of Hulu, and the company has launched its Disney branded streaming service with tremendous success with kudos from Reed Hastings. I feel that the company offers a compelling long-term investment opportunity given its growth catalysts that will continue to bear fruit over the coming years despite the current headwinds. Continue reading "Disney Streaming Negating COVID-19 Impact"

Here's One Stock That Could Do Very Well In Q4

There are two months left in the quarter and the Fed continues to dither, and if anything, create uncertainty in the marketplace. I read this morning there's a 52% chance that they will raise interest rates in December. That means there is also a 48% chance that they will not raise interest rates in December. This uncertainty and lack of direction from the Fed is causing anxiety problems for the market.

That aside, I do have a stock that I think will do well for the balance of the year. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) had a monthly green Trade Triangle trigger yesterday. The stock has the potential to move up as much as 20% in the next several months. In today's video, I'll show you why I think it can move up 20% from current levels. I will also share with you an important technical aspect that makes me believe that this can happen this quarter or early in Q1 of 2016. Continue reading "Here's One Stock That Could Do Very Well In Q4"

Will The Force Be With The Walt Disney Company (NYSE:DIS)?

Today, I am going to be analyzing the stock of The Walt Disney Company (NYSE:DIS), who reports earnings after the bell today.

Like many of us, I grew up with Mickey and Donald and the rest of the Disney characters. Disney as a company is loved by folks around the world and has a strong brand. That said, the stock can and does have corrections and it may be set for another correction after the earnings come out tonight. The market itself seems to have a little bit of a negative tone, which is indicating to me to be on the sidelines in this stock at the moment.

The recent red weekly Trade Triangle for Disney is the first red flag that the stock may have put in a top. While not as significant a change as a monthly Trade Triangle, it should not be ignored. The second red flag for Disney is the glaring negative divergence between price action (number 6) and the MACD (number 8). This is not a good sign and the divergence could be a warning of an impending drop in this stock.

This in-depth analysis of The Walt Disney Company (NYSE:DIS) is not saying that this stock is going to collapse. I am only reporting on certain technical elements that could cause this stock to come under downside pressure. Continue reading "Will The Force Be With The Walt Disney Company (NYSE:DIS)?"