Rocket Equities & Options - Disney Update 10-13-20
Disney reorganizes to focus on streaming and direct to consumer content
It didn't take long for Disney to trade higher and get back inside its uptrend channel. Disney is currently trading up about 3% overnight at $129.00. After the close last night, Disney announced a reorganization that will focus the company's future on direct to consumer delivery of their content.
In order to accelerate its direct-to-consumer strategy, Disney will be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.
“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value,” Disney CEO Bob Chapek said in a statement. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it.”
Regardless of the overnight trading impact, this is the type of progression we expected. Disney is going to be a direct to consumer powerhouse, and when you have 100,000,000 subscribers it makes sense to focus on that product first.
In order to accelerate its direct-to-consumer strategy, Disney will be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.
“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value,” Disney CEO Bob Chapek said in a statement. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it.”
Regardless of the overnight trading impact, this is the type of progression we expected. Disney is going to be a direct to consumer powerhouse, and when you have 100,000,000 subscribers it makes sense to focus on that product first.
Earnings on our radar this week:
Wednesday: Bank of America (BAC), PNC Financial Services Group (PNC), The Progressive Corp. (PGR), UnitedHealth Group (UNH), US Bancorp (USB), Goldman Sachs (GS), Wells Fargo (WFC) before market open; Alcoa (AA), United Airlines (UAL) after market close
Thursday: Charles Schwab (SCHW), Walgreens Boots Alliance (WBA), Morgan Stanley (MS) before market open
Friday: Bank of New York Mellon (BK), VF Corp (VFC), E-Trade Financial Corp (ETFC), Schlumberger (SLB), Kansas City Southern (KSU), Honeywell (HON), Citizens Financial Group (CFG), Ally Financial (ALLY), State Street Corp (STT)
Stay tuned for updates today and tomorrow.
Wednesday: Bank of America (BAC), PNC Financial Services Group (PNC), The Progressive Corp. (PGR), UnitedHealth Group (UNH), US Bancorp (USB), Goldman Sachs (GS), Wells Fargo (WFC) before market open; Alcoa (AA), United Airlines (UAL) after market close
Thursday: Charles Schwab (SCHW), Walgreens Boots Alliance (WBA), Morgan Stanley (MS) before market open
Friday: Bank of New York Mellon (BK), VF Corp (VFC), E-Trade Financial Corp (ETFC), Schlumberger (SLB), Kansas City Southern (KSU), Honeywell (HON), Citizens Financial Group (CFG), Ally Financial (ALLY), State Street Corp (STT)
Stay tuned for updates today and tomorrow.
Options Trades:
None
Short Term portfolio:
None
Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $129.65. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $36.26. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $187.01. Stop is $164.05.
None
Short Term portfolio:
None
Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $129.65. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $36.26. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $187.01. Stop is $164.05.
Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish
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