It's fair to say that Apple (AAPL), Disney (DIS), and AT&T (T) will be making headlines this week, even though those market bellwethers posted their latest quarterly reports weeks ago. All three are hosting presentations this week, and the market will be paying attention.
Apple is hosting a media event on Tuesday. Disney follows with its annual shareholder meeting on Wednesday. AT&T will update investors on Friday. Let's take a closer look at how these three gatherings could shape the market this week.
Image source: Getty Images.
Apple's Tuesday event
It's important not to get our hopes up as we head into Apple's media event in California on Tuesday morning. The world's most valuable company by market cap has historically released its juiciest iPhone and MacBook updates in the fall. Tuesday's big reveal will likely be a refresh of its entry-level iPhone SE smartphone. The company may also show off tweaks to some of its Macs and tablets, but Apple events held at this time of the year are unlikely to be needle-movers.
The good news for shareholders is that expectations are already relatively low for Apple this year. The class act of Cupertino has been operating on three-year cycles lately. It burst through with double-digit percentage sales growth during fiscal 2012, 2015, 2018, and 2021, and each of the earlier surges was followed by a two-year lull, reflecting the gap between major iPhone upgrades. Analysts are anticipating 8% top-line growth this fiscal year after a 19% jump last year. Apple may very well rewrite the script and surprise the market in a good way on Tuesday, but given the minimal expectations heading into the media event, it is unlikely to disappoint.
Disney's Wednesday event
Shareholder meetings are typically ho-hum affairs, but there's nothing that Disney does that doesn't attract attention. The media giant is hosting its annual gathering of investors, but the virtual event will be streamed for anyone who wants to check it out. There are a handful of shareholder proposals on the agenda concerning Disney's hiring, lobbying, and meeting practices, but those rarely gain enough traction to prevail in proxy votes.
All 11 of Disney's board members are also up for re-election, and that is where things might get interesting. Disney was the worst performer of the Dow 30 last year, and that might make some investors hesitant to simply rubber-stamp the boardroom for another term. Some theme park enthusiasts have also started lobbying to get CEO Bob Chapek removed from the board of directors after the company's recent theme park moves, but that effort also is unlikely to succeed. The price hikes and premium add-ons at Disney's iconic gated attractions may be irritating diehard fans, but they also happen to be part of the reason why the segment is now operating at near-record levels. It will still be interesting to see Chapek fares in the voting compared to his fellow board members.
AT&T's Friday event
We will close out the week with AT&T trying to reach out and touch someone. The telecom giant hosts its Analyst & Investor Day on Friday morning. The primary objective of the event will be to provide updates on its business strategy and capital allocation plans.
AT&T shook the market last year when it announced that it would be spinning off its HBO-helmed WarnerMedia business. The company has been unwinding some of its biggest acquisitions, and investors are concerned about the dividend, which will be slashed once the transaction is complete, and what AT&T will look like afterward.
It's not as if AT&T has been doing so great in its current state. Revenue has declined in back-to-back years, and the promise of the 5G revolution as a growth driver for its flagship wireless business has yet to materialize. With AT&T's stock price near a multiyear low, the company needs to make a connection with more than just its customers.
