Tag Archives: Disney

Stocks Try To End Big Week On A High Note

FRIDAY – U.S. stock futures pointed to a little changed open on Friday following a record-setting session for the major stock indexes.

Around 7 a.m. ET, Dow Jones Industrial Average futures were unchanged but pointed to a gain of 33 points at the open. S&P 500 and Nasdaq 100 futures pointed to a flat open.

The small implied gain for the Dow comes after Disney shares jumped more than 5% on great earnings. Disney’s revenues for its media and networks segment topped estimates, while sales for the company’s parks, studio entertainment and direct-to-consumer businesses also beat expectations.

Stocks rose to record highs on Thursday after the world’s two largest economies reportedly agreed to remove existing trade tariffs, sparking a huge rotation into equities and out of bonds. The U.S. 10-year Treasury yield jumped more than 15 basis points at one point on Thursday, its biggest upward move since the 2016 election.

The increasingly positive tone around global trade put the major indexes on track for solid weekly gains. Entering Friday’s session, the Dow is up 1.2% week to date. The S&P 500 and Nasdaq Composite are both up 0.6% for the week through Thursday’s close. It would be the third straight week of gains for the Dow while the S&P 500 headed for its fifth straight weekly gain. The Nasdaq was on pace for a six-week winning streak.

On the data front, consumer sentiment figures are due out at 10 a.m. ET, as well as wholesale trade numbers.

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Roku Stock Takes A Dive

Shares of Roku plunged Thursday as the streaming devices company posted third-quarter results that missed Wall Street’s expectation after multiple quarters of blowout growth.

Roku reported a third-quarter loss of 22 cents a share, worse than the 18 cents a share loss analysts surveyed by FactSet expected. Roku had beaten analysts’ expectations for quarterly earnings in seven of its last eight reports.

“ROKU broke a string of 2019 beats reporting a mixed 3Q and a frankly surprisingly mixed 4Q despite its (temporary) leadership position in the distribution of Disney+,” Pivotal Research analyst Jeffrey Wlodarczak said. “We are not surprised by the … decline indication in the stock in the after-market as an undeniably rich 12+X ’20 revenue multiple simply does not leave a lot of room for anything but material beats.”

Pivotal has a sell rating on Roku with a $60 price target. RBC Capital similarly pointed out Roku’s advantage as a distributor, as it get revenue from the streaming services of Apple, Disney, Amazon and Netflix. But unlike Wlodarczak, RBC’s Mark Mahaney has an outperform rating on Roku, as he sees it “as one of the best plays on ad-supported” over-the-top services, saying “the Streaming Wars catalyst isn’t showing up in the numbers yet, but we continue to believe ROKU will benefit materially.”

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