Disney+ or Disney--? | Before & After | Refinitiv | Summary and Q&A

TL;DR

Disney's new streaming service, Disney Plus, has driven excitement and investor admiration, although it may initially be a drag on EPS. Uber aims to deliver positive Abita in 2022, but its earnings estimates are less favorable. Caterpillar has a gloomy outlook with a decline in EPS and a challenging business environment.

Key Insights

• 👶 Disney's traditional business is highly valued, but investors are anxiously awaiting the performance of its new streaming service, Disney Plus.
• 🤘 Uber's stock has shown signs of recovery, mainly due to market confidence in its CEO's plan to achieve positive Abita in 2022, but earnings and revenue growth estimates remain mixed.
• 👨‍💼 Caterpillar's guidance, indicating a decline in business in China and the U.S. construction sector, has impacted its stock, and further declines may occur if pessimism continues.
• 🫥 Top-line growth is crucial for growth stocks like Uber, but sustained losses and price pressures from competitors are concerning, emphasizing the need for improved margins.
• 😀 Uber's stock faces resistance at the 61.8% retracement level, which needs to be cleared convincingly for sustained growth.
• 👷 Caterpillar's somber outlook and the potential decline in construction activity could result in a further decline in its stock price if the 130 level is breached.
• 🐕‍🦺 Disney's streaming service, Disney Plus, may initially be a drag on EPS, but the company's dominance in the motion picture industry and healthy margins provide optimism for its long-term success.

Transcript

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Questions & Answers

Q: How has Disney's new streaming service impacted its stock performance?

The launch of Disney Plus was considered successful, but the stock underperformed Netflix shortly after. Positive guidance on Disney Plus subscribers in the upcoming report will be crucial for the stock's reaction.

Q: What is the market's outlook on Uber's earnings and revenue growth?

Analysts expect a slight improvement in revenue for Uber, but the estimates for its earnings in Q4 are negative. Investors are waiting to see if Uber can improve its margins and profitability.

Q: How does Caterpillar's outlook affect its stock price?

Caterpillar provided a gloomy outlook and guided down its EPS for 2020. The stock sold off mildly, but a break below the 130 level could lead to further declines, while holding above it may indicate temporary stability.

Q: What factors could impact Uber's margins and stock performance?

Uber must navigate pressure from competitors and potential changes in labor laws. If rates are driven down and industrywide prices reset, it could improve Uber's margins and please investors.

Summary & Key Takeaways

• Disney's traditional business is highly valued, but its new streaming service, Disney Plus, is causing investors to be jittery about the upcoming quarterly results.

• Uber hopes to achieve positive Abita in 2022, but analysts have mixed expectations regarding its earnings and revenue growth.

• Caterpillar lowers its EPS guidance for 2020, citing a decline in business and construction activity in China and the U.S.