And it's time now for our 360 round. We'll be discussing Disney, the company trading lower desping beating its expectations. They reported an earnings speed on the top and bottom lines.Entertainment revenues rising 7% yearonear. Now, multiple reports indicating that parks division chief Josh Dearo will be the company's next CEO, replacing replacing Bob Iger. Joining us to take a closer look at these earnings, talk through some of the numbers, and also the potential implications of that new CEO, Steven Kent, ...

Industry Overview - The potential merger between Paramount and Warner is significant for the industry, with labor factions expressing concerns about Netflix's role in the deal [2][3] - If Paramount and Warner merge, it could lead to a reduction in the number of major studios, creating a more consolidated market [3] - The outcome of the merger will likely influence future M&A activity in the industry, as global scale is crucial for success in streaming [9][10] Company Analysis - Paramount is viewed as the weaker competitor in the current landscape, making the merger more critical for its growth and survival [7][8] - Netflix's acquisition of Warner is seen as less essential for its operations, although it would still be a strategic move [8] - The decision-making process for both companies will be influenced by data-driven strategies, but the ultimate valuation by shareholders will be the deciding factor [6][11]

Core Insights - Walt Disney Co. is expected to report its fiscal fourth-quarter earnings, with analysts anticipating growth in its streaming business, theme parks, and sports segments [1][9] - Citi analysts have raised their price target for Disney stock to $145, highlighting investor focus on the streaming outlook and potential impacts from recent events [2][3] - A stronger-than-expected earnings report could enhance investor enthusiasm for Disney shares, which have underperformed compared to the S&P 500 this year [4][3] Financial Projections - Analysts project Disney will report earnings per share of $1.04, with revenue expected to rise less than 1% year-over-year to $22.75 billion, driven by direct-to-consumer and experiences segments [5] - Revenue from Disney's linear networks, including ABC and ESPN, is anticipated to decline compared to the previous year [5] Analyst Sentiment - Wall Street analysts are predominantly bullish on Disney stock, with all six analysts rating it a "buy" and a mean target price of $146, indicating a potential 25% upside from recent closing prices [6]

Core Insights - Disney is preparing for a busy November with a new theme park attraction, a theatrical release, and an earnings report that could influence its stock performance [1][3] Group 1: Theme Park Developments - The official opening of "Zootopia: Better Zoogether" at Disney's Animal Kingdom is set for November 7, replacing an older attraction and aiming to enhance guest experiences [4][5] - Disney remains the world's most prolific theme park operator, but faces competition from Comcast, which reported a 19% revenue increase in its theme parks due to the opening of Epic Universe [2][10] Group 2: Financial Performance Expectations - Disney's fiscal fourth-quarter results will be reported on November 13, with analysts projecting $27.8 billion in revenue, reflecting a less than 1% year-over-year increase, and a profit of $1.03 per share, indicating a 10% decline [9][11] - Despite the expected decline, Disney has previously exceeded earnings expectations in the last three quarters, suggesting potential for positive surprises [9] Group 3: Upcoming Film Releases - The release of "Zootopia 2" on Thanksgiving Eve is anticipated to boost Disney's box office performance, following a weaker year for theatrical releases [12][13] - The original "Zootopia" was a significant success, grossing over $1 billion globally, and the sequel is expected to attract a similar audience [13]

Core Insights - The Walt Disney Company (DIS) is a global entertainment entity valued at $200.8 billion, with diverse operations including media networks, parks and resorts, studio entertainment, consumer products, and interactive media [1] Earnings Expectations - Analysts anticipate DIS to report a profit of $1.03 per share for Q4 2025, reflecting a 9.7% decrease from $1.14 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to be $5.87, marking an 18.1% increase from $4.97 in fiscal 2024, with further growth projected to $6.48 in fiscal 2026, a 10.4% year-over-year rise [3] Stock Performance - DIS stock has increased by 17.1% over the past 52 weeks, outperforming the S&P 500's 16.9% gains but underperforming the Communication Services Select Sector SPDR ETF Fund's 27.5% gains during the same period [4] Growth Drivers - The company's growth is significantly supported by its profitable streaming business, with potential for margin improvement as advertising sales grow and prices increase [5] - Key growth initiatives include a new direct-to-consumer ESPN service and investments in theme parks, such as a new park in Abu Dhabi, alongside box-office successes that enhance streaming offerings and customer relationships [5] Analyst Ratings - The consensus opinion on DIS stock is bullish, with a "Strong Buy" rating from 20 out of 29 analysts, while the average price target is $136.58, suggesting a potential upside of 22.3% from current levels [7]

Core Insights - Netflix's upcoming third-quarter earnings report on October 21 is anticipated to be a bullish catalyst for its stock, with expectations of strong revenue growth and positive management guidance [1][2]. Revenue Growth - Netflix is projected to report a revenue increase of 17.3% for the third quarter, reaching approximately $11.5 billion, building on a record $11.1 billion in total revenue during the second quarter of 2025, which was a 15.9% increase year-over-year [5][6]. - The company's advertising revenue has doubled in 2024, with similar growth expected in 2025, indicating a strong growth driver from its advertising tier [4]. Content Spending - Netflix plans to spend a record $18 billion on content creation and licensing in 2025, with a significant portion allocated to live programming, which is crucial for attracting and retaining subscribers [8]. - The company generated $10.2 billion in net income over the 12 months ending June 30, translating to earnings of $23.47 per share, allowing it to outspend competitors on content [7]. Subscriber Engagement - The advertising tier accounts for about half of all signups in regions where it is available, priced at $7.99 per month, making it a valuable segment for Netflix [3]. - Live sports programming, such as exclusive NFL games, has proven to significantly boost viewer engagement, with the average subscriber spending around two hours daily on the platform [9][10]. Investment Considerations - The stock is currently trading at a price-to-earnings (P/E) ratio of 51.4, which is higher than the Nasdaq-100 technology index's P/E ratio of 32.6, suggesting it may be expensive for short-term investors [13]. - However, analysts project earnings growth to $32.39 per share by 2026, indicating a forward P/E ratio of 37.2, which could make the stock more attractive for long-term investors [14][16].

Core Insights - Netflix has demonstrated strong performance, with a stock increase of approximately 150% over the past five years [1] - The company has successfully innovated through original content, advertising, and password sharing policies, contributing to its growth [1] - Netflix's stock valuation has surpassed $500 billion, reflecting its dominance in the streaming market [2] Financial Performance - Netflix is on track for a minimum 20% gain for the seventh time in nine years, with shares up around 32% year to date [4] - The stock has consistently generated annual gains of 20% or more since 2017, significantly outperforming the S&P 500's average annual return of about 10% [6] - In the latest earnings report, Netflix reported revenue of $11.08 billion, slightly above analyst expectations, with earnings per share of $7.19 [7] Market Trends - Despite a decline in 2022, Netflix has provided substantial returns for long-term investors, with gains exceeding 850% since 2017 [6] - The company anticipates a slight decline in margins due to increased sales and marketing costs in the latter half of the year, a trend consistent with previous years [8] - Netflix's current trading at 50 times trailing earnings indicates a high valuation, suggesting it may be considered expensive [9] Investment Outlook - Netflix remains a strong long-term investment option, despite potential short-term corrections and high valuation [10] - The company continues to be a leader in the streaming industry, making it a favorable stock for long-term holding [11]