Diamonds and Dogs

11/8/19

Disney + is coming. Disney is trading up 3% back toward all-time highs following better than expected numbers. Disney easily beat expectations by 10 cents as revenues rose 33.6% to $19.1 billion. All the divisions performed well including ESPN which has stemmed the flow of lost subscribers. But the future for Disney is in streaming. Disney will launch Disney+ on November 12^th which includes Marvel, Pixar, Star Wars, Nat Geo, and The Simpsons. Analysts are expecting 20 million first-year subscribers. Not bad. Plenty of upgrades with price targets as high as $170 a share.

Gap (GPS) fires their CEO. Gap is down 7% not far from a 52-week low following another disappointing quarterly report. Gap lowered third quarter and full year estimates as sales continue to lag. Gap continues to struggle to find the right apparel for their finicky customer. Gap also has relied on routine 50% discounts and maintaining a major presence in declining American malls which has not worked. As one analyst reported, "It was probably the most overdue management change that we've seen in a while."