One advantage to listening to the PreMarket Prep show: hot stocks for the day are discussed at length from both and technical and fundamental viewpoints. No other financial broadcasts have the time or the talent to do this.
In addition, the opinions formed are not out of the blue and many of the scenarios discussed relate back to prior shows when the designated issues were formerly in the news.
What could be hotter issues to discuss on Thursday than Tesla Inc. TSLA and Disney Co. DIS? For the first time ever, these two issues are together the PreMarket Prep Stocks of the Day.
Is Musk Done Selling? Elon Musk tweeted to his massive, cult-like following Saturday to ask whether he should sell 10% of his Tesla stake. When his followers confirmed his preconceived notion, he unloaded some of his stake Monday and Tuesday.
At this time, the multi-billionaire has parted with 3% of his holdings, of which $1.1 billion was already in the pipes since mid-September.
In addition to the timeline of the event, listen to the strange set of circumstances being discussed on Thursday’s show and future implications for Tesla's bloated share price:
House Of Mouse Trapped: By far, the biggest earnings story of the day, or the week for that matter, was the disappointing fourth-quarter report from Walt Disney. The company reported quarterly earnings of 37 cents per share, which missed the analyst consensus estimate of 44 cents by 15.91%.
The company reported quarterly sales of $18.53 billion, which beat the analyst consensus estimate of $16.26 billion by 13.99%.
Making matters worse was the tepid growth in Disney+ subscribers. Paid subscribers totaled only 18.1 million vs. a 124.5-million estimate. Since much higher expectations for growth have already been baked into the share price since December, the extremely disappointing increase had investors heading to the exit en masse.
It should be noted that co-host Dennis Dick has been worried for months over the lack of new content coming out of the channel and has avoided having the issue in his portfolio.
The author of this article has maintained that if and when the issue breaches the bottom of the trading on the monthly charts ($168), there was major downside in store for the issue.
Listen below to both the fundamental and technical analysis of Disney being discussed:
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