Disney's Epic Investment

Plus, Arm’s AI chip growth forecast.

Today is Thursday, February 8, 2024.

The Early Bird Index today is 67.22.

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Disney's Epic Investment

Walt Disney (NYSE: DIS) posted good financial results (and other interesting news) on Wednesday, causing shares to jump by 6.71% in after-hours trading.

Financials: Disney reported earnings of $1.22 per share in the past quarter, which was better than expected. Revenue reached $23.5 billion, which was lower than expected.

Details: The company’s cost reduction plans are on track, and now Disney expects earnings to grow by at least 20% this year. While its streaming business is still losing money, Disney anticipates profitability in that unit by the fourth quarter.

Powering the Story: Disney is spending its cash. In addition to a 50% increase in its dividend, Disney announced that is investing $1.5 billion in Epic Games.

Final Thoughts: Disney, down 11% in the past 12 months and facing pressure from activist investors, posted good results and created positive buzz. CEO Bob Iger strikes again!

Alts.co (Sponsored)

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Notable Earnings Today: ConocoPhillips (NYSE: COP), Affirm (Nasdaq: AFRM), Take-Two Interactive Software (Nasdaq: TTWO), Expedia Group (Nasdaq: EXPE), Under Armour (NYSE: UAA), Philip Morris International (NYSE: PM), Pinterest (NYSE: PINS), Cameco (NYSE: CCJ), Spirit Airlines (NYSE: SAVE), Hershey Foods (NYSE: HSY), Harley-Davidson (NYSE: HOG), Bill.com (NYSE: BILL), Boyd Gaming (NYSE: BYD), Illumina (Nasdaq: ILMN), S&P Global (NYSE: SPGI), Motorola Solutions (NYSE: MSI), Lincoln National (NYSE: LNC), Dexcom (Nasdaq: DXCM), Dynatrace (NYSE: DT),  Apollo Global Management (NYSE: APO), Ares Management (NYSE: ARES), Arrow Electronics (NYSE: ARW), Asbury Automotive (NYSE: ABG), Aurora Cannabis (Nasdaq: ACB), Axalta Coating Systems (NYSE: AXTA), Baxter (NYSE: BAX), BorgWarner (NYSE: BWA), Capri Holdings (NYSE: CPRI), CleanSpark (Nasdaq: CLSK), Cloudflare (NYSE: NET), Colliers International Group (Nasdaq: CIGI), CyberArk Software (Nasdaq: CYBR), Doximity (NYSE: DOCS), Duke Energy (NYSE: DUK), FirstEnergy (NYSE: FE), Flowers Foods (NYSE: FLO), Genpact (NYSE: G), Intercontinental Exchange (NYSE: ICE), The Interpublic Group of Companies (NYSE: IPG), ITT (NYSE: ITT) Kellanova (NYSE: K), Kenvue (NYSE: KVUE), Kimco Realty (NYSE: KIM), Leggett & Platt (NYSE: LEG), Lightspeed Commerce (NYSE: LSPD), Lions Gate Entertainment (NYSE: LGF.A), Lumentum (Nasdaq: LITE), Masco (NYSE: MAS), Mettler-Toledo (NYSE: MTD), Mohawk Industries (NYSE: MHK), NNN REIT (NYSE: NNN), Omnicell (Nasdaq: OMCL), Paylocity (Nasdaq: PCTY), Petmed Express (Nasdaq: PET), PROS Holdings (NYSE: PRO), Ralph Lauren (NYSE: RL), RBC Bearings (NYSE: RBC), Snap-On (NYSE: SNA), SolarWinds (NYSE: SWI), Spectrum Brands (NYSE: SPB), Synaptics (Nasdaq: SYNA), T. Rowe Price (Nasdaq: TROW), Tempur Sealy International (NYSE: TPX), Tenet Healthcare (NYSE: THC), Transdigm Group (NYSE: TDG),VeriSign (Nasdaq: VRSN), WEX (NYSE: WEX), Zimmer Biomet (NYSE: ZBH).

Notable IPOs Today: Kyverna Therapeutics, Inc. Common Stock (Nasdaq: KYTX).

Notable Equity Crowdfunding Campaigns Ending Today: Poppy (SMBX), Timeless Coffee Roasters (SMBX).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), WASDE Report (12:00 p.m. ET), Fed's Balance Shee (4:30 p.m. ET).

Arm’s AI Chip Growth Forecast

Arm Holdings (Nasdaq: ARM) surged by 19.85% in after-hours trading on Wednesday after the semiconductor company posted strong financial results along with an excellent forecast based on growing artificial intelligence chip sales.

Final Thoughts: Arm, up 26% since its IPO last year, is benefiting from the current AI craze.

PayPal’s Worrying Outlook

While PayPal (Nasdaq: PYPL) posted better-than-expected financial results, shares dropped by 8.00% in after-hours trading on Wednesday due to a disappointing outlook from the company.

Final Thoughts: PayPal, down 20% in the last 12 months, is trying to turn things around. Wednesday’s results were not a good start for that comeback.

For the Wynn: Wynn Resorts Shares Climb on Earnings Beat (Barron’s)

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