Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>The main focus will remain on Direct-to-Consumer profitability, but areas such as the recently announced restructuring plan and pricing power in parks &amp; experiences also deserve attention.</li>
<li>The main focus is on the company's Direct- to- consumer profitability.</li>
<li>It has been three months since my latest update on <strong>The Walt Disney Company (<span class="ticker-hover-wrapper">NYSE:DIS</span>)</strong> when I highlighted a number of reasons why the company is finally in a good position to deliver on its bottom line figures.</li>
</ul>


The main focus will remain on Direct-to-Consumer profitability, but areas such as the recently announced restructuring plan and pricing power in parks &amp; experiences also deserve attention.
The main focus is on the company's Direct- to- consumer profitability.
It has been three months since my latest update on The Walt Disney Company (NYSE:DIS) when I highlighted a number of reasons why the company is finally in a good position to deliver on its bottom line figures.


Disney's Q3 2023 Earnings: A Pivotal Quarter To Appease Investors And Analysts

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Jeroen Blokland

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<ul>
<li>Unlike many suggest, the downgrade of the US credit rating by Fitch, resulting in the US losing its Triple-A status, will have significant impact on markets.</li>
<li>The disappointing ISM Manufacturing Index comes with massive downside for Equities in all regions.</li>
<li>While the Big Tech earnings dream get to live another day, the risks of a further and more significant slowdown in company earnings remain abundant.</li>
</ul>


Unlike many suggest, the downgrade of the US credit rating by Fitch, resulting in the US losing its Triple-A status, will have significant impact on markets.
The disappointing ISM Manufacturing Index comes with massive downside for Equities in all regions.
While the Big Tech earnings dream get to live another day, the risks of a further and more significant slowdown in company earnings remain abundant.


The Weekly Market Monitor (31) – Bye, Bye, Triple-A

Independent research on the U.S. markets, Baptista Research

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Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Netflix delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.</li><li>Key second quarter results indicated revenue of $8.19 billion, adjusted earnings per share (EPS) at $3.29, and a surge in subscribers with 5.89 million net additions, all of which are above expectations.</li><li>The shortfall in revenue was counteracted by strong performance in profitability metrics, such as the operating margin and free cash flow, which surpassed expectations.</li></ul>

Netflix delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.Key second quarter results indicated revenue of $8.19 billion, adjusted earnings per share (EPS) at $3.29, and a surge in subscribers with 5.89 million net additions, all of which are above expectations.The shortfall in revenue was counteracted by strong performance in profitability metrics, such as the operating margin and free cash flow, which surpassed expectations.

Netflix Inc.: Crackdown On Password Sharing A Temporary Subscriber Growth Boost! - Key Drivers

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<ul><li>So far in 2023, mega-cap growth names such as Meta, Nvidia, Microsoft, and Netflix have continued to provide market leadership resulting in a 41% YTD gain in the QQQ ETF.</li><li>However, last week saw notable rotation away from technology (XLK) to the healthcare, energy, and financial sectors.</li><li>This came off the backs of notable technology heavyweights Tesla and Netflix earnings reports and investors selling off these names after their earnings prints this week.</li></ul>

So far in 2023, mega-cap growth names such as Meta, Nvidia, Microsoft, and Netflix have continued to provide market leadership resulting in a 41% YTD gain in the QQQ ETF.However, last week saw notable rotation away from technology (XLK) to the healthcare, energy, and financial sectors.This came off the backs of notable technology heavyweights Tesla and Netflix earnings reports and investors selling off these names after their earnings prints this week.

<ul>
<li>While early, the comparison to the previous quarter is remarkable. Almost all sectors reported better-than-expected earnings, but the market reaction has been negative in most cases. </li>
<li>Investors are fixated on inflation and the end of the Fed's tightening cycle. But the strong US labor market means the Fed will want to keep rates higher for longer. </li>
<li>The net percentage of bulls in the survey has risen to nearly 30%, pushing our Fear &amp; Frenzy Sentiment Index further into 'Frenzy' territory.</li>
</ul>


While early, the comparison to the previous quarter is remarkable. Almost all sectors reported better-than-expected earnings, but the market reaction has been negative in most cases. 
Investors are fixated on inflation and the end of the Fed's tightening cycle. But the strong US labor market means the Fed will want to keep rates higher for longer. 
The net percentage of bulls in the survey has risen to nearly 30%, pushing our Fear &amp; Frenzy Sentiment Index further into 'Frenzy' territory.


The Weekly Market Monitor (29) - The Moment of Truth?

United States

Netflix Inc. is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes.

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Netflix Inc (NFLX US)

Disney's Q3 2023 Earnings: A Pivotal Quarter To Appease Investors And Analysts

The main focus will remain on Direct-to-Consumer profitability, but areas such as the recently announced restructuring plan and pricing power in...

Vladimir Dimitrov, CFA

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So far in 2023, mega-cap growth names such as Meta, Nvidia, Microsoft, and Netflix have continued to provide market leadership resulting in a 41%...

Weekly Stock Bull Finder

The Weekly Market Monitor (29) - The Moment of Truth?

The US labor market remains uncomfortably tight, keeping bond yields high, providing massive pressure on overvalued Big Tech stocks to deliver on...

Jeroen Blokland

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Disney's Q3 2023 Earnings: A Pivotal Quarter To Appease Investors And Analysts

The main focus will remain on Direct-to-Consumer profitability, but areas such as the recently announced restructuring plan and pricing power in...

Vladimir Dimitrov, CFA

The Weekly Market Monitor (31) – Bye, Bye, Triple-A

The US has lost the Triple A-rating, which, unlike many suggest, will have major implications. If not in the short run, then definitely in the long...

Jeroen Blokland

Netflix Inc.: Crackdown On Password Sharing A Temporary Subscriber Growth Boost! - Key Drivers

Netflix delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. Key second quarter results indicated...

Baptista Research

Weekly Stock Bullfinder - Week of 7/24

So far in 2023, mega-cap growth names such as Meta, Nvidia, Microsoft, and Netflix have continued to provide market leadership resulting in a 41%...

Weekly Stock Bull Finder

The Weekly Market Monitor (29) - The Moment of Truth?

The US labor market remains uncomfortably tight, keeping bond yields high, providing massive pressure on overvalued Big Tech stocks to deliver on...

Jeroen Blokland