I Find Your Lack of Investment Disturbing
The more The Walt Disney Co. (NYSE: DIS) tightens its grip, the less online media is able to slip between its fingers. The Mouse’s House has finally assumed control of online streaming platform Hulu … paying former owner Comcast Corp. (Nasdaq: CMCSA) a measly $5.8 billion.
Hulu is the final piece in Disney’s master plan for online streaming domination. Disney+ is launching later this year, backed by a treasure trove of classic movies from the Disney Vault. Plus, it’s the only place you will be able to stream Avengers: Endgame when it releases.
The real online battle station will come when Disney bundles Disney+, ESPN+ and Hulu into one tidy streaming media package. The Old Republic of Amazon Prime Video and Netflix should be very worried, indeed.
With a complete array of sports, TV and movies available online, the new Disney bundle will be bigger than Netflix. Now, Disney won’t put Netflix out of business, but the growth potential for your investment dollars is considerably greater with DIS. So, buy Disney stock.
The Good, the Bad and the Ugly
The Good: Prince Ali, Fabulous He, Alibaba!
If I’ve said it once, I’ve said it a thousand times: Alibaba Group Holding Ltd. (NYSE: BABA) doesn’t need the U.S. market. Would it be nice for explosive growth? Sure. But Alibaba has cornered the Asian market, one with growth potential that the world hasn’t seen since the end of World War II.
Want proof? Despite poor U.S.-China trade relations, Alibaba reported this morning that earnings and revenue rose 50% and 51% in the first quarter, respectively. How about that, Mr. Doubting Mustafa?
If you’re on the fence on BABA, I suggest you find a way to make room for it in your growth portfolio now. It’s not going to stay below $200 per share forever.
The Bad: Canadian Cannabis Goes up in Smoke
Smoke ’em if you got ’em. Tilray Inc. (Nasdaq: TLRY) stock dropped more than 3% and Aurora Cannabis Inc. (NYSE: ACB) is down nearly 2% following mixed earnings results. There were bright spots, such as Aurora selling nine tons of pot (that’s enough for Willie and Snoop), and Tilray’s revenue soaring 195%. But earnings for both rolled up short of expectations.
The reports have clearly taken the edge off the cannabis market’s buzz. But the market is still growing rapidly, and these drops are likely a buying opportunity for pot investors [Note: link to RWE Pot promo].
The Ugly: I Am Serious … and Don’t Call Me Shirley
Turbulence is one thing. But when the pilots are nervous, you should be too. The Boeing Co. (NYSE: BA) doesn’t seem to take that axiom of air travel to heart, however. When confronted by pilots after a 737 Max crashed in October, Boeing downplayed pilots’ concerns. According to audio obtained by CBS, the company said that giving additional info on the aircraft was “unnecessary.”
I had a snarky remark for this one, but Todd Wissing, an American Airlines pilot on the recording, sums it up rather nicely: “I would think that there would be a priority of putting explanations of things that could kill you.”
So, avoid 737 Max aircrafts if you can … they are unnecessary, after all. Oh, and you should probably wait a while longer before diving into Boeing stock. There are better highfliers out there right now.
Great Stuff’s Wednesday Comic Corner
I’m looking at you, Lyft and Uber!
Beyond Meat, you get a pass … for now.
What Can I Say Except … You’re Welcome!
There’s a lot of negativity floating around the market right now. We’re inundated with media headlines telling us about the U.S.-China trade war, how the U.S. economy is headed for a recession and how a market crash is imminent.
The major financial media outlets might as well be carrying a big neon sign flashing “Sell Now!”
Here at Great Stuff, we’re not here to pat your hand and tell you everything is going to be all right. We’re not your mother … or your therapist.
We’re the hoopy froods in the “Don’t Panic!” camp.
So, today we’re bringing you a counterargument to mounting bearish hype — three arguments, in fact.
Banyan Hill guru Paul Mampilly believes that now is the time to buy, and he’s got three reasons why:
For more on Paul’s take on the market, check out his new video below:
Until next time, good trading!
Great Stuff Managing Editor, Banyan Hill Publishing