Disney Turns Into Amazon Prime
And, Nvidia’s new requirement.
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Disney Turns Into Amazon Prime
Shares of Walt Disney (NYSE: DIS) ticked down 0.47% in after-hours trading on Wednesday after a report said that the entertainment giant is exploring a membership program with special perks for customers.
Details: As reported Wednesday afternoon by The Wall Street Journal, this program would be similar to Amazon (Nasdaq: AMZN) Prime, with free shipping and discounts.
Insiders: While Disney has not commented on the story yet, the report said that Disney executives have referred to the idea as “Disney Prime,” which won’t be its official name. The goal of the program would be to encourage users to spend more on streaming services and parks.
Numbers: Disney’s stock is down 28% this year, but is up 5% in the past 30 days.
Final Thoughts: An Amazon Prime-like program would really help Disney, which already had made incredible progress with its streaming service.
Notable Earnings Today: Lululemon Athletica (Nasdaq: LULU), Campbell Soup (NYSE: CPB), Broadcom (Nasdaq: AVGO), Hormel (NYSE: HRL), Toro (NYSE: TTC), PagerDuty (NYSE: PD), Signet Jewelers (NYSE: SIG), Smartsheet (NYSE: SMAR), Build-A-Bear Workshop (NYSE: BBW), Tillys (NYSE: TLYS), Ciena (NYSE: CIEN), Oxford Industries (NYSE: OXM), Ollie’s Bargain Outlet (Nasdaq: OLLI), Calavo Growers (Nasdaq: CVGW), Weibo (Nasdaq: WB), HashiCorp (Nasdaq: HCP), 1-800-Flowers.Com (Nasdaq: FLWS), nCino (Nasdaq: NCNO), Science Applications International (NYSE: SAIC), Quanex Building Products (NYSE: NX), Genesco (NYSE: GCO), G-III Apparel (Nasdaq: GIII), JOANN (Nasdaq: JOAN), SecureWorks (Nasdaq: SCWX), Sportsman's Warehouse (Nasdaq: SPWH).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: MyWallSt (Republic), Reaper Robs (StartEngine), ReNewSnow (InfraShares).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Employment (10:00 a.m. ET).
Nvidia’s New License Requirement
Shares of Nvidia (Nasdaq: NVDA) dropped 6.56% in after-hours trading on Wednesday after the chip company said it would have to deal with new rules for future exports to China.
Details: As first reported by Reuters, the U.S. is imposing a new license requirement for future exports of chips to China, including Hong Kong. In a regulatory filing, Nvidia said that the new requirement will address potential military risks with users in China and Russia.
Reaction: The company is trying to get an exemption for the requirement from the U.S. government, citing how it will negatively impact product development.
Numbers: Similar to other stocks in the semiconductor industry, it’s been a rough year for Nvidia. The stock is down nearly 50% in 2022.
Final Thoughts: As Nvidia aims to turn things around, this new requirement will only make things more difficult.
Flow Jumps on Ticketmaster News
The price of the cryptocurrency Flow ticked up about 1% on Wednesday due to an announcement of a partnership with Ticketmaster.
Details: Event organizers on Ticketmaster can now issue NFTs (non-fungible tokens) tied to tickets that are on the Flow blockchain, according to TechCrunch.
Final Thoughts: This is good news for Flow, but the price of the cryptocurrency is still down a bit over the last 30 days.
Trends to Watch
Gone in a Snap: Read Snap CEO Spiegel’s Memo to Staff About Job Cuts (Bloomberg)
Way Below: Five Below 2Q Revenue Misses Expectations on Curbed Consumer Spending (MarketWatch)
Join the Club: Walmart-owned Sam’s Club raises annual membership fee for the first time in nine years (CNBC)
Oops: Crypto.com refunded someone $7.2 million by mistake (Engadget)
Roll up Your Sleeves Again: FDA authorizes Pfizer and Moderna's updated Covid-19 boosters (CNN)
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