3 Entertainment Stocks That Moved the Market Monday

From Lions Gate to Netflix to Disney, entertainment stocks swung big.

Mar 24, 2014 at 6:54PM

The stock market edged lower today, as investors continued to unload biotech stocks en masse. The health care sector started selling off heavily on Friday after reports that three members of congress had grumpily petitioned Gilead Sciences to explain how they priced their product. Wall Street, fearing an industrywide crackdown, promptly unloaded shares of similar companies, and the pessimism didn't stop on Monday. The Dow Jones Industrial Average (DJINDICES:^DJI) lost 26 points, or 0.2%, to end at 16,276.

While biotechs were down across the board, three entertainment stocks also made their impact on the market.

Shares of Walt Disney (NYSE:DIS) finished toward the bottom of the Dow today, losing 1.1%. The largest entertainment company in the world announced the new co-chairman of its TV business, a move Disney made in a hurry after current head honcho Anne Sweeney announced her departure two weeks ago. That said, the way the company distributes its content is a larger issue in the long-term. Disney's seen the light, embracing the shift to streaming by teaming with Netflix (NASDAQ:NFLX) on a few exclusive deals.

But this relationship with the premier name in web streaming didn't help Disney today, as Netflix stock took a 6.7% dive. Apparently the largest publicly traded company in the world, Apple is in talks with Comcast to offer a streaming service that would directly compete with Netflix. The Wall Street Journal report late Sunday said Apple would offer a set-top box with special treatment from Comcast's cable infrastructure so content wouldn't buffer endlessly or take eons to load. The two companies are only in talks, but the risk is real for Netflix, as evidenced by its sharp decline today.

Finally, shares of Lions Gate Entertainment (NYSE:LGF) surged 3.8% Monday, as the company's teen-targeting Divergent film performed well in the box office despite negative early reviews from critics. The film pulled in $56 million domestically in its opening weekend, allowing Lions Gate investors to rest easy and relax. Divergent is based on the wildly popular novel of the same name, and is the first installment in a trilogy, so a flop this weekend would've meant dramatically reduced expectations for the future.

John Divine owns shares of Apple and Google. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends and owns shares of Apple, Google, Netflix, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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