Diamonds and Dogs

11/9/18

Disney (DIS) a bright spot in a down market. Disney is trading up 1.6% to new all-time high following earnings last night. Disney easily beat estimates as revenues rose 11.9% to $14.3 billion. Theme parks and studios business offset extended subscriber declines at its ESPN sports network. Theme park operating profit rose 11% to $829 million. Studio profits doubled to $569 million thanks to big hits such as the "Incredibles 2" and "Ant-Man and the Wasp." Disney has plenty of new movies and sequels coming out in 2019 like Captain Marvel, Avengers 4, Dumbo, Aladdin, Toy Story, Frozen and Star Wars. 2019 should be another great year.  

Yelp (YELP) needs help. The online review website is down 27% to a new 52 week low following earnings. The company beat estimates, but sales only grew 8% to $241.1 million below estimates. Yelp also lowered guidance for the fourth quarter as new accounts for advertising slowed and the company shifted from 12 month customer contracts to non-term contracts. At least four downgrades with new price targets as low as $29 a share.