Activision Blizzard (ATVI): ATVI and Microsoft (MSFT) continue to await a regulatory ruling on the proposed acquisition of ATVI for $95 per share. The companies expect to close the deal in 2023, and Northlake continues to expect approval despite the large discount to the deal price at which ATVI trades. Recently, the discount has narrowed […]
VICI Properties (VICI): VICI reported its typically boring quarter with results in line to slightly better than street expectations. Boring is exactly what we like about VICI. As a landlord to the nation’s two leading gaming companies, Caesars and MGM, VICI’s business model is highly predictable. The company collects rents with built-in escalators. Beyond the […]
Disney (DIS) reported slightly disappointing earnings for its 4Q21 with modest shortfalls across most business segments headlined by preannounced weak Disney+ streaming subscriber additions and poor operating margins at theme parks. With a new fiscal year starting in October, management took the opportunity to reset expectations across most of its business lines. Stock Reaction: Since […]
Disney (DIS) reported FY 3Q21 results that were better than expected for both financial metrics and subscriber additions. Long-term guidance was not updated since DIS is in the process of creating the operating plan for FY22. Given ongoing strength in DTC services – Disney+, ESPN+, and the recently profitable Hulu – and the ramping recovery […]
Disney (DIS) shares are trading down about -3% on a big up day for the market after reporting 2Q21 results. Despite reporting results ahead of expectations on financial metrics and seeing estimates for revenue, operating income, and EPS rise, the shares are falling due to a shortfall in growth for Disney+ subscribers and management guidance […]
We are moving from neutral on growth vs. value to all-in on value effective today. We are sticking with mid cap. As a result, for clients using Northlake’s thematic models, we have sold all client positions in the Russell 1000 Growth (IWF) and reinvested the proceeds into the Russell 1000 Value (IWD). There will be […]
Disney (DIS) reported its first quarter under its new reporting structure which is designed to isolate the company’s three main businesses and especially highlights the Direct-To-Consumer (DTC) streaming businesses that are the future of the company’s media businesses. Results in the company’s 1Q21 were better than guidance and analyst expectations but are not a short-term […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
Disney (DIS) reported another quarter of massive subscriber gains for Disney+ and steady growth for the Hulu and ESPN streaming services. Subscribers for Disney+ came in at almost 74mm vs expectations of 65mm, growth of about 16mm subscribers since the end of last quarter. About half the gain came from India, where DIS charges less […]
Disney had a truly awful quarter. But the stock is up 10% today! Investors have chosen to look past the pandemic’s devastating impact on theme parks, ESPN (no live sports last quarter), and inability to release blockbuster films. Instead, the focus is on the continuing massive success (as measured by subscribers) of Disney+ and newly […]
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