From "Star Wars" to "Candy Crush": 3 Stocks Moving the Market Today

Disney aids the Dow, Education Management Corporation plunges, and King Digital Entertainment soars ahead of earnings.

May 5, 2014 at 6:41PM
Longview

Stocks trended mostly higher on Monday, as investors looked to earnings season for guidance. This week will be light on economic data -- after the most recent trade balance figures come out tomorrow, the week's most highly anticipated market-moving events are Janet Yellen's appearance in Washington on Wednesday and weekly jobless claims figures the following day. If you're yawning already you're not alone -- so was Wall Street. On volume more than 25% below the trailing 3-month average, the Dow Jones Industrial Average (DJINDICES:^DJI) lazily made its way 17 points, or 0.1%, higher.

Walt Disney (NYSE:DIS) stock finished as one of the more exciting movers in the Dow today, adding 1.1%. Disney will announce its quarterly results tomorrow after market close, and at least one Wall Street firm was itchy to publicize its last-minute, pre-earnings take on the shares. Topeka Capital upgraded Disney stock to buy from hold, bestowing shares with a $91 price target, or a 12% premium to today's closing price. While it's probably in the retail investor's best interest to digest Wall Street analysis with a healthy dose of skepticism, Disney's entertainment assets are second to none, and the company knows how to milk them for cash. The most exciting cash cow right now might be the Star Wars franchise, which could easily spawn a handful of spinoff shows, productions, or movies, in addition to the guaranteed revenue stream it'll see from the box office and licensing deals. 

Meanwhile, shares of Education Management Corporation (NASDAQOTH:EDMC) slumped 6.1%, as investors continued to bemoan the company's miserable earnings report. The for-profit education company forecast a loss of between $0.14 and $0.17 per share in the current quarter, a far cry from the $0.03 per share analysts expected from Education Management. The woeful projection sent the stock spiraling nearly 30% lower in a single day; the next day, credit-rating agency Moody's hit the company while it was down, downgrading its debt to Caa3 and slapping a negative outlook on it as well. With the government cracking down on the way for-profit educators try to expand enrollment, this industry -- and this company -- face a long, uphill battle.

Candycrushsaga

King's "Candy Crush Saga" is easily the company's most popular game. Source: company website.

The prospects for King Digital Entertainment (NYSE:KING), on the other hand, aren't quite as dire. Shares of the company behind the hit app "Candy Crush Saga" soared 8.5% Monday as several analysts chimed in with optimistic price targets for the stock. King will report earnings for the first time as a public company on Wednesday, less than two months after its IPO. Three of the investment banks that initiated upbeat coverage of the stock also helped in underwriting its IPO, so as always, take these official opinions with a grain of salt. While I think King's IPO was priced conservatively, it ain't easy coming up with consistently popular gaming apps, and that's precisely what King will need to do to be a wise long-term investment.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends and owns shares of 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers