SNAP posted (not surprisingly) another set of lousy earnings. The stock opened sig' lower (intra low $12.10), settling -14.5% at $12.93. The break of trend offers the $9s in the near term. M/t outlook remains 'suspect', and is only marginally less terrible than Blue Apron (APRN).
SNAP daily
Summary
Suffice to add... garbage results, for a company that is not much more than a cash hungry monster.
Just reflect on this often overlooked issue, whilst the US/world economy is growing, SNAP still can't manage even a fractional profit.
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In related news...
The same maniacs - Stifel, who were touting APRN a buy this summer, were also bullish SNAP
I'm actually more curious to see how long it takes the 'smart guys' at Credit Suisse to crawl out of their holes, and issue another target.
Whilst the main market leaned somewhat weak, there was notable strength in Disney (DIS), which settled +1.0% at $101.61. Earnings are due Thurs' Nov'9th in AH, and that will clearly have broader implications for the remainder of the year.
DIS daily
DIS monthly
Summary
There have been a trio of stories surrounding Disney in the past week...
First, Disney threatening various cinema chains that if they don't show 'The Last Jedi' for a certain amount of weeks, they won't get access to the film.
Second, Disney banning LA Times film critics - although Disney have (today) backed down on that issue, after a huge mainstream backlash.
Third, the reveal that Disney was in preliminary talks to buy part of 21st century fox.
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Earnings: I expect them to come in 'fine'. The current FPE is in the 15s, with a yield of around 1.5%. On any basis... not expensive.
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Technically...
The Sept'7th low of $96.20 now marks a washout low. Recent price action >100 gives confidence that the Sept' low is a mid term low.
First soft target is the 200dma in the 105s. M/t target is the Aug'2015 high of $118.62. In theory, if main market is strong across 2018, broad upside to 140/50 is viable. That might seem a long way up, but the same was said of AAPL when it was trading in the $90s in mid 2016.
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Whilst the main market saw a day of mostly fractional gains, there was significant strength in JD.com (JD), which settled +1.5% at $39.01. Last week's low of $35.79 marks an increasingly secure m/t floor. First big target is the Aug'8th high of $48.99, and then the psy' level of $50.00.
JD daily
JD monthly
Summary
Suffice to say, last week likely saw a key m/t floor, after choppy cooling from the Aug' high.
I am m/t bullish JD, and it is a very valid alternative to Alibaba (BABA).
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Its notable there was some call buying in JD last week...
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*Earnings are due Nov'13th (pre-market), and I expect them to come in at least 'reasonable', and it would be the natural excuse for renewed mainstream interest, with the stock to push well into the $40s.
