Disney Shares Rising Ahead of Tuesday Earnings Release
2 hr 12 min ago
Shares of Disney (DIS) were 2.4% higher about an hour before Monday’s closing bell ahead of the release of the company’s earnings report tomorrow.
Analysts anticipate Disney to show subscriber growth for its fiscal second quarter as it benefits from the recent bundling of Disney+, Hulu, and ESPN+.
Investors will also be looking for updates about the path to profitability in its streaming business after CEO Bob Iger said the company expects it to be profitable by the end of the fiscal year.
UBS analysts, who have said that Disney’s streaming segment is “the biggest source of near-term upside,” noted that “the consolidation of Hulu in the U.S. should also drive engagement and help streamline operations, boosting streaming margins.”
Analysts project Disney’s revenue to be $22.08 billion for the second quarter of 2024, down from the previous quarter but up from $21.82 billion in the same period in 2023, according to estimates compiled by Visible Alpha.
Net income is expected to be $1.97 billion, also a decline from the first quarter but up from $1.7 billion in the second quarter of 2023. Diluted earnings per share (EPS) are projected at $1.09, compared with 93 cents in the same period a year earlier.
Tyson Tumbles As CEO Cites Macro Concerns
2 hr 54 min ago
Tyson Foods (TSN) shares were down nearly 8% in mid-afternoon trading Monday, leading S&P 500 decliners, as “macro environment” concerns raised by its chief executive during the company’s earnings call offset higher-than-forecast quarterly profit.
Tyson reported adjusted earnings per share (EPS) of 62 cents for its fiscal second quarter, nearly double the consensus estimate compiled by Visible Alpha, and a turnaround from the loss per share of 4 cents it registered in the same period last year. Revenue declined over the year by 0.5% to $13.07 billion, just short of forecasts.
Chief Executive Officer (CEO) Donnie King said Tyson is “not immune to the macro environment” in the company’s earnings call Monday.
Micron Leads Nasdaq Gainers Following Baird Upgrade
4 hr 13 min ago
Micron Technology (MU) were up more than 4% in mid-afternoon trading Monday and were the biggest gainer on the Nasdaq after Baird upgraded the stock and raised the price target, saying it sees “meaningful upside opportunities ahead” for the semiconductor maker.
Baird boosted its rating to “outperform” from “neutral,” and lifted the price target to $150 per share from $115. It also added Micron to its list of “top semiconductor ideas,” which also includes Nvidia (NVDA), Broadcom (AVGO), and Semtech (SMTC).
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Baird Senior Research Analyst Tristan Gerra wrote in a note to clients that Micron shares look attractive after a recent pullback, which came even as demand trends for DRAM chips have accelerated.
Gerra noted that DRAM chip pricing is stronger than anticipated, “while supply growth is expected to slow industry wide.”
Palantir Shares Jump Ahead of Earnings Report
5 hr 25 min ago
Shares of Palantir (PLTR) were up more than 6% in late-morning trading Monday ahead of the release of the data analytics software maker’s quarterly earnings report after the closing bell.
Analysts expect Palantir to report that revenue and earnings rose from the year-ago period amid a surge in demand for artificial intelligence, and market participants will be watching closely later Monday to gauge whether AI momentum can sustain Palantir’s growth.
Investors are looking for sustained growth in the company’s commercial segment, which accounted for about 45% of the company’s revenue last year. Goldman Sachs analysts said they “believe the key debate on the stock will be the durability of growth in US Commercial as Palantir’s strengths with data stitching intersect with customers’ AI projects.”
Palantir’s stock has gained amid enthusiasm for its potential amid a boom in AI demand, with some analysts saying it’s a key benefactor while others have suggested it’s overvalued on AI hype.
Apple in Focus After Berkshire Reduces Stake
7 hr 7 min ago
Apple (AAPL) remains in focus Monday, after a big gain on Friday, following news over the weekend that Warren Buffett’s Berkshire Hathaway had sliced its stake in the iPhone maker during the first quarter.
Though Apple remains by far Berkshire’s largest stock holding, the latest reduction is far greater than the 10 million-share cut disclosed for the fourth quarter. Berkshire is also Apple’s single largest shareholder.
Buffett assured investors at the company’s shareholder meeting on Saturday that his views on the tech giant’s business hadn’t changed, adding that it’s “extremely likely” that Apple will remain Berkshire’s largest stock holding at the end of 2024.1
When asked whether his view on Apple had changed, the Oracle of Omaha told shareholders that he thought Apple is an even better business than American Express (AXP) and Coca Cola (KO), two of Berkshire’s other large holdings.
Buffett’s remarks may have helped alleviate investors’ concerns that Berkshire was reducing exposure to Apple over valuation concerns following its 48% gain in 2023 and forward earnings multiple of 28 times. Still, the stock may face short-term price fluctuations as investors digest Berkshire’s latest sales in the stock.
Apple shares, which were down 0.5% at $182.46 in early trading Monday, have oscillated roughly within a 30-point trading range since August 2023, with the price testing the pattern’s upper and lower levels several times over the past eight months. More recently, the stock gapped above the 200-day moving average on Friday after posting a better-than-expected earnings report and announcing a $110 billion stock buyback program.
If the shares continue to see follow-through buying, investors should monitor the $196 level, an area on the chart where the price may encounter overhead resistance from the range’s top trendline. However, during periods of weakness, watch for a potential gap fill down to around $173, which sits in close proximity to the 50-day moving average.
Stock Futures Rise, Building on Two Weeks of Gains
8 hr 15 min ago
Futures contracts tied to the Dow Jones Industrial Average were up 0.4%.
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S&P futures gained 0.5%.
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Nasdaq futures traded 0.4% higher about 45 minutes before Monday’s opening bell.
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