Disney
Breaking down AT&T’s stock after WarnerMedia spin-offNearly four years after fighting a hard battle to acquire WarnerMedia and accelerating its foray into the media business, AT&T (NYSE:T) has gone back to its roots to focus on being a telecommunications company.
On April 8, AT&T completed the spin-off of 100% of its interest in WarnerMedia, which owns subscription service HBO Max and film production company Warner Bros., and merged it with Discovery Inc. (NASDAQ:DISCA) to form a mega-streaming platform to better take on giants like Netflix (NASDAQ:NFLX), Apple’s (NASDAQ:AAPL) Apple TV, and Disney+ and Hulu by Walt Disney (NYSE:DIS).
Foray into media services
AT&T completed its $85.4 billion acquisition of WarnerMedia, formerly Time Warner, in 2018 about two years after first disclosing the move. The company had hoped to provide seamless media content through its direct-to-customer distribution. It subsequently rebranded Time Warner into what is now known as WarnerMedia.
WarnerMedia owns Netflix rival HBO Max, an over-the-top subscription service launched in 2020 with a ton of exclusive and original contents, as well as HBO classics.
However, in the years that AT&T acquired WarnerMedia, HBO Max still lagged Netflix, which continues to dominate the global streaming platform.
According to tech news platform CNET, Netflix remains the biggest streaming service provider in 2022, with Disney+, Hulu, Amazon.com’s (NASDAQ:AMZN) Prime Video, and HBO Max trailing behind.
The merger of WarnerMedia with Discovery to form Warner Bros. Discovery (NASDAQ:WBD) is expected to up both platforms' game against Netflix, Amazon, and Disney.
Since announcing the closing of the merger, AT&T’s stock has jumped 7% as of Thursday, April 14, but down nearly 14% on a year-on-year basis. Its rival, Verizon (NYSE:VZ) is also trading almost 8% down from a year ago.
Bullish on AT&T?
Although AT&T’s stock remains below year-ago levels, many analysts remain bullish on the telco’s stock, citing its renewed focus on its core telco operations.
Bank of America analyst David Barden recently reaffirmed his buy rating on AT&T with a $25 price target, saying its shares are undervalued. Barden also noted that the spin-off of WarnerMedia will help ease the complexity of AT&T’s operations.
"With the deal now closed, the dividend reset, and the investor base stabilizing, we believe the stage is set for investors to begin focusing on AT&T’s improving fundamentals," Barden reportedly wrote in a note to clients.
JP Morgan analyst Philip Cusick also issued an upbeat outlook on AT&T’s stock, setting a price target of $22, urging investors to capture the discount on the company’s share price.
Focus on core telco business
Analysts now expect AT&T to double down on its wireless business and expand its fiber optic reach amid intense competition against rivals like Verizon in the broadband space.
In the fourth quarter of 2021, AT&T’s revenue fell to $41 billion from $45.7 billion a year earlier on the back of lower business wireline revenue, which was slightly offset by higher mobility and consumer wireline turnover, and strong revenue from WarnerMedia.
The absence of WarnerMedia’s results will likely weigh on AT&T’s financials in the near term, but its renewed focus on being a telecom pure-play company will make it more competitive against Verizon T-Mobile US (NASDAQ:TMUS) and other smaller players as it expands and improves its 5G wireless networks.
"Going forward, we aim to be America's best broadband provider powered by 5G and fiber, and defined by greater ubiquity, reliability, capacity, and speed,” AT&T CFO John Stankey said in a recent earnings call.
Stankey added that the company will focus on growing its subscribers and accelerating the pace of its 5G deployment.
$DIS Disney Key Levels, Analysis, & Targets $DIS Key Levels, Analysis, & Targets
Do I think that Target 4 will hit… also-freakin’-lutely…
I had to do some research to make sure that a move like that is justified with Disney… and it definitely is…
I have my alerts set for Target 4…
I don’t trade or accumulate this regularly so I don’t think I’ll be starting a position any higher than target 3… If it gets below the purple EMA line (Which is the 180EMA carried over from the Monthly Chart) I will consider a long position…
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I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
IF you need anything analyzed Technically just comment with the Ticker and I’ll do it as soon as possible…
Disney: This One Doesn't End WellDisney
Short Term - We look to Sell a break of 128.13 (stop at 131.49)
A break of bespoke support at 130.00, and the move lower is already underway. Trades with a bearish descending triangle formation. Our outlook is bearish. The trend of lower highs is located at 142.00. Continued downward momentum from 160.00 resulted in the pair posting net daily losses yesterday.
Our profit targets will be 116.29 and 102.30
Resistance: 142.00 / 158.00 / 185.00
Support: 130.00 / 120.00 / 100.00
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DIS TO $180. $130, $125, $115 support Dis approaching support level $130, $125, $115. Im buying at these levels for long with a target of $180. Disney will see COVID relief rally and economy recovery. This market may take years to see the effects of further rate increase.
Debt is questionable, don’t ask questions
This is not financial advice. It’s only is for entertainment.
Longing Disney. DISGoals 150, 156. Invalidation at 129 .
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in green with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe
DISNEY - $126Disney shares are down over 32% from their all time high. Looking to pick up some Disney Shares in that golden pocket range under $126.
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DIS Disney Price TargetsTwo weeks ago you could have bough DIS at the October 2020 level. What an opportunity that was, with one year and 4 months gains washed away.
But now they reported a strong Q1 earnings:
earnings of $1.06 per share vs 57 cents in the Zacks consensus
revenues of $21.8 billion vs $21.2 billion analysts expectations
Disney+ subscriber numbers: 129.8 million vs 125.8 million expected. That was somehow to be expected after the NFLX earnings .
Parks, Experiences and Products segment growth of over 100% YoY
My price target is the $159 resistance and, if they continue like that in the second quarter, $175.
Looking forward to read your opinion about it.
Walt Disney CoDisney reversed course into an uptrend on Jan. 24 and on Feb. 3 printed a higher low within the pattern.Disney printed a higher high above the Feb. 1 high of $144.69, which further confirmed the trend. When Disney reached its Jan. 24 lows, it mostly filled a gap between $128.66 and $133.86, which should give bulls more confidence going forward. On Wednesday, Disney was working to fill an upper gap between the $144.69 to $147.15 range and if Disney has a bullish reaction to its earnings print, it could work its way back up into a higher gap between $153.13 and $155.17. If Disney has a bearish or muted reaction to its earnings print, the current uptrend will remain intact as long as the stock doesn’t fall below the Feb. 3 low-of-day at the $139.25 mark. If the level is held and bulls come in to buy the dip on a possible gap down, it will allow Disney to print another consecutive higher low, which would provide a solid entry point for traders not already in a position.Disney is trading above the eight-day and 21-day exponential moving averages (EMAs) but the eight-day EMA is trending below the 21-day. If Disney is able to remain above the 21-day EMA the eight-day will eventually cross above it, which would be bullish.
* Bulls want to see a bullish reaction to Disney’s earnings to prompt big bullish volume to enter the stock and drive up over the 50-day simple moving average, which would then indicate longer-term sentiment has turned bullish. There is resistance above at $147.85 and $153.88.
* Bears want to see big bearish volume come in following the earnings print drop the stock down to print a lower low to negate the uptrend. There is support below at $141.87 and $137.14.
GET READY FOR TAKEOFF!!!Within regards to technical analysis, while taking a deep look into the Disneys chart we see an ascending triangle pattern formed and now we are waiting for a breakout. The base of the triangle pattern formed on January 24th. It has touched the top twice and the bottom 4 times. In the past in regards to moving averages, we see that when the 20 day and 50 day moving averages are below the 200 day and as they inch closer to a merging point at the merging point the stock bounces in a bullish direction sending investors long. Right now our 20 days and 50 day days are stuck in our pattern today we closed with 5 candles on the hour hourly chart closing above these 2 and at the same time the 20,50and 200 days, MAs are getting closer and closer initiating the breakout. We see this pattern on the 1,5,15,30,45 minute chart, hourly and daily chart
Amazon and my shopping basketDisney, T Mobile, Amazon, Charter Communications, Netflix.
What do all of these companies have in common?
1) They are all >$100B market cap.
2) They all have >10B Gross Profits.
3) They are all at 52 Week Lows.
4) They're all on my shopping list.
Amazon just had it's worst week since 2018 after underperforming the S+P in 2021, but this behemoth isn't going anywhere. I don't need to tell you about the value of it's core ecommerce business that we all use, or the AWS that runs a huge chunk of the internet, the 2nd largest hosting provider with their cloud hosting servicing 42% of the top 10k websites by traffic (Source: BuiltWith), or the success of Prime through logistical brilliance, a successful streaming platform and acquisition of Wholefoods to make the most convenient home shopping platform in the world.
I don't have to tell you about the 31 acquisitions Amazon has made since 2017, 15 of those since 2019.
I don't have to tell you that Amazon is an incredible company that still has a long runway of success and innovation ahead in a growing number of sectors (drones? Yes please!)
That's why Amazon is one of my top choices for investment in 2022.
The business circumstances for each company deserve separate posts in their own right, but to put it simply these companies are the cream of the crop in their industries and we currently have a fire sale.
When the market dips, it's the perfect time to go shopping, and each of these companies deserve serious consideration in your portfolio. Do your own research and make your decisions, but when it comes time to go bargain hunting why not start with the best in class?
A few more stocks I'm looking at meet that >$100B market cap, >$10B gross profits, industry leaders but that are at 6 Month Lows include:
Estee Lauder
Target
Oracle
Blackrock
Salesforce
Alphabet (GOOG)
We can see where the market takes us this week, but I can say with certainty I'll be a buyer on a number of these names this week.
Disney Dip Buy ZoneI have been following disney for a month now. The count I have now is the same as I first saw it. The box is a mix of both the 61.8% of the whole impulse wave as well as the ABC pattern in the last wave down. Also, I'm watching REALLY CLOSELY for the Rsi to diverge as it is already making a lower low with the RSI st a lower low. Looking for support to confirm.
DIS BullFeeling bullish on DIS here lately. New Genie+ in parks will help bring in extra revenue, new rides and updated parks coming 2022. Imagineering getting a refresh it needs with the move to Florida from CA. Whats not to like? Chapek? He isn't my favorite so far but sometimes you have to crack some eggs...
DIS bullish trade DIS oversold here on 1H chart. Plus we have found support and bouncing from this TL here which has held nicely so far. Stochastics oversold and turning up here. Possible retrace to 153 here. SL below todays low. Plus we also have lots of call flow coming in for for the 152.50 strike calls for 01/21/22
$DIS Bearish set up into 1/6/2022 Post FOMC. Disney has broken a key support that it has had since early/mid December on the 1 hour. This coupled with a bearish triangle forming could see a clean break under 154.26 if $SPY also continues to fall. Under that there is thin price action and the next price target would be 152.47 and under that is 151.39. Puts under 154.26 here with relative strength for the day and $SPY confirmation.