Mulan Coming on Disney +, and how we watch movies can change forever.
That Walt Disney (ticker: DIS) decided to bring the 1998 animated feature to its Disney + subscription service as a more delayed live-action remake and it shouldn’t come as a surprise. The film was to be launched in March and has been continuously being pushed back since. With some indication that Americans were ready to return to movie theaters, something had to be given — and Disney ultimately decided to take advantage of the stage it had available.
Lightshed Partners Richard Greenfield noted that Disney spoke Mulan As if it were an experiment, one that would help the company understand how consumers would pay $ 30 for a movie, and whether it subscribed more to Disney +. The economics may be even better: 85% of sales through Disney through Disney + will be 55% from the theatrical release.
Investors feel comfortable with Disney being the head. Despite reporting a per-share loss of $ 2.61, its stock rose 11% last week, although when adjusted for one-time costs, the company reported an eight-percent gain, up from 64-percent. Loss was better predicted by analysts. More important, Disney + continues to gain subscribers, with 60.5 million as of August. “We were impressed by Disney’s success in leveraging its content to promote growth in its digital initiatives, while still balancing its interest in maintaining healthy profits in its legacy businesses. “JP Morgan analyst Alexia Quadrani writes.
If Disney’s digital strategy is good for its stock, it certainly isn’t for traditional movie theater stocks, says Greenfield of LightShed. They believe that the release time of the film in theaters and then between rental and other platforms will reduce the waiting time, with fewer people going to theaters to watch the cinema. “The end result is disastrous for film exhibitors,” they write.
AMC Entertainment Holdings (AMC) has already signed a deal with Universal that allows studios to start showing movies on premium-on-demand after just 17 days and will offer the same deal to other studios. It will bring some cash, but analysts are concerned about AMC’s high debt levels and rents. For example, in 2019, AMC had a rent of $ 768 million plus $ 968 million in earnings before interest, taxes, depreciation, and amortization, or as MacBerry analyst Chad Beyon writes. “Our concern is that even if the theaters reopen in limited capacity over the summer, AMC will remain in a precarious financial position.”
The entire theater sector is a show that investors should feel free to leave.
It’s time to get away from apple.
We know that sounds crazy. The stock is very high for the last decade and is also very high in 2020. But it has gone too far, investors should pay attention.
What do we mean On Thursday, Apple (AAPL) rose 3.5% to $ 455.61, raising it by almost 24% from its 50-day moving average. This is the highest since 2008. The 50-day moving average measures a stock’s short-term trend, and technical analysts view it for signs of support and resistance. When a stock rises above its trend, it is an indication that it may be set to decline.
This happened the last time Apple traded more than 20% of its moving average. In March 2012, the stock traded 22.81% above its 50-day moving average and lost more than 20% the following year. Worse, the S&P 500 grew by 11% during the same period.
To be sure, trading 20% above the 50-day moving average has not always been a warning signal for Apple. While the stock suffered after topping that level in 2007 and 2008, it stalled in 2003 after a dot-com bust hit that level.
Still, there are signs that Apple stock needs to cool down. In upgrading it this week, BofA Securities analyst Vamsi Mohan said it is now at a 10-year high relative to the S&P 500 based on 2021 earnings, and the Fed’s actions have expanded its price / earnings ratio to a large extent. Scale. Boost the economy. In fact, almost the entire increase in Apple’s move came from investors’ willingness to pay more for the stock, not an increase in earnings expectations, he notes.
Mohan writes, “Since the beginning of the year the market has expanded by 2 multiple points across many (except for COVID-related correction) while AAPL shares have expanded by 9 multiple points. “” We don’t consider it sustainable in the near term. ”
Apple made a comeback after 2012 and has been a prolific stock for a long time. Our Tech Trader columnist, Eric Savitz feels this will continue. But from the convenience point of this column, it now seems that it is too hot to handle.
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