Disney Surges After Investor Day

I neglected to mention Disney’s (DIS) strong performance on Friday. In the newsletter issue, I said it was higher in Thursday’s after-hours market, but I had no idea how strong it would be. At one point on Friday, Disney was up 16%. DIS eventually closed at $175.72 which was a gain of 13.6%. Not bad.

The stock market is up so far today which reverses three down days in a row from last week. It’s early but so far, small-caps and growth stocks are leading the charge. Energy stocks are down the most but that’s after an impressive rally over the last month.

Last week, Wall Street was floored by the DoorDash and Airbnb IPOs. According to the WSJ, recent IPOs are pricing at an average of 23.9 times revenues. In the 2010s, the average was six times revenues. Snowflake is going for 200 times revenue. The action has been so heavy that one highly anticipated IPO, Roblox, said they’re going to hold off their offering until next year. No one, it seems, likes to leave money on the table.

There’s no big economic news today, but the Federal Reserve meeting starts tomorrow. We’ll also get the latest report on industrial production.

Posted by on December 14th, 2020 at 12:24 pm


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