Today is Tuesday, October 19, 2021.
Disney’s Magic Runs Out
Shares of Disney (NYSE: DIS) dropped 3% Monday after a Barclays analyst downgraded the company to equal weight and cut the price target by $35.
Details: The analyst cited problems with its streaming platform, Disney+, writing that the subscriber growth has slowed and has not kept up with Netflix (Nasdaq: NFLX).
Film Delays: In addition to the analyst downgrade and the subscriber issues, Disney also announced Monday that it is delaying the theatrical releases for several of its big blockbuster films.
Numbers: While Disney’s stock had a great 2020 in the face of the pandemic, 2021 has not been the same. The stock is down 3.68% this year, leaving some investors to wonder if Disney is overvalued or not.
Optimism: Disney’s theme parks are slowly rebounding and there is hope that the cruise business will come back in a post-pandemic world. When the pandemic ends, Disney will see its theme park attendance climb. If there’s another lockdown, Disney is hopeful that its streaming service grows.
Final Thoughts: Disney will report earnings on November 10.
Notable Earnings Today: Netflix (Nasdaq: NFLX), United Airlines (Nasdaq: UAL), Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), Travelers (NYSE: TRV), Bank of New York Mellon (NYSE: BK), Fifth Third Bancorp (Nasdaq: FITB), Canadian National Railway (NYSE: CNI), Kansas City Southern (NYSE: KSU), Philip Morris International (NYSE: PM), Synchrony Financial (NYSE: SYF).
Notable IPOs Today: SportsMap Tech Acquisition Corp. Units (Nasdaq: SMAPU), Blockchain Moon Acquisition Corp. Units (Nasdaq: BMAQU), Enterprise 4.0 Technology Acquisition Corp. Unit (Nasdaq: ENTFU), ProShares Bitcoin Strategy ETF (NYSE: BITO), Vivid Seats Inc. Class A Common Stock (Nasdaq: SEAT).
Notable Equity Crowdfunding Campaigns Ending Today: Colorado Manure Hauling (Honeycomb), Solutions Vending International (StartEngine), Mercury (Wefunder), Elephant Craft Hard Seltzer (StartEngine).
Notable Economic Events Today: Building permits (8:30 a.m. ET).
Bitcoin Futures ETF Trades Today
For the first time ever, there will be a futures exchange-traded fund (ETF) on Tuesday, a big step forward for the cryptocurrency and ETF communities.
Details: Called the ProShares Bitcoin Strategy ETF (NYSE: BITO), this investment will track Bitcoin futures contracts, which is an agreement to buy Bitcoin in the future at a set price. It will not track the actual current spot price of Bitcoin.
Advantages: A futures ETF can offer investors exposure to Bitcoin without having to own the actual asset. Proponents say it is less volatile than regular cryptocurrency and offers more liquidity.
Disadvantages: However, there are plenty of critics who prefer to buy actual Bitcoins, which recently reached its highest price since May.
Final Thoughts: Today’s introduction of a Bitcoin Futures ETF will pave the way for other crypto ETFs by next year.
What is the Next Great Meme Coin?
In the past few weeks, the price of the meme cryptocurrency Shiba Inu has soared by 200%. What’s the next great meme coin?
Xs and Ys: Some have speculated that XYO could be the next great meme coin. It is still a young coin, but it finally had its price increase in March 2021. By September, Coinbase (Nasdaq: COIN) added it to its platform, the same month that Shiba Inu was added.
Be a Boss: The Boss token launched this year. Similar to Shiba Inu, it is worth way less than 1 cent. On the Boss token’s website, the founders are trying to position the coin as the next Shiba Inu.
Baby: Similar to Shiba Inu, which was modeled after Dogecoin, there’s Baby Dogecoin. It’s worth even less than one Shiba Inu and has a tiny market cap. If there was ever to be another meme coin bounce, this coin might benefit.
Final Thoughts: Some crypto investors focus on these new altcoins. Others try to avoid them at all costs.
Trends to Watch
Inequality: The wealthiest 10% of Americans own a record 89% of all U.S. stocks (CNBC)
Waiting: Shipping times for new MacBook Pro models already slipping to late December (9to5Mac)
This and That: F.D.A. to Allow ‘Mix and Match’ Approach for Covid Booster Shots (New York Times)
Black Friday is Here: Walmart Announces Black Friday Sales — Plan Ahead for Major Deals Starting Today (Yahoo!)
Trading Frenzy: SEC’s GameStop Report Questions ‘Game-Like’ Trading Apps (The Wall Street Journal)
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