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Today we are watching…
1.ย Twilioย (#twlo)
With botched earnings reports especially topical this morning, letโs throw back to October and recall Twilio, a cloud-computing firm, getting the math wrong on its own earnings forecasts. Investors wanted to know what profits to expect from the company after a full year of business, so Twilio crunched the numbers and added up four trailing quartersโ worth of profits (or tried to). The firm announced a better than expected 16 to 17 cent bottom-line per share. Markets cheered. And then, Twilio issued an important clarification. Five cents of profit per share in the first quarter on top of 3 in the second, 3 in the third, and one or two in the fourth adds up to 12 to 13 cents, actually. Twilioโs stock price cratered 17%, so youโre not alone, Crowdstrike!
2. Disney (#disney)
Disney has left its competition for dead in 2019, agreed? The blue-chip is king of the box office with five record-breaking movies grossing over a billion dollars. On top of that, thereโs an ever-increasing tally attached to โFrozen 2,โ and โStar Wars: The Rise of Skywalkerโ isnโt even out yet! Disneyโs share price has outperformed the S&P 500 this year, and deservedly so. However, what about next year? Many of these blockbuster titles are sequels or finales, so a weakened content slate puts the pressure on Disney+ to win the streaming war. Could the company also expand its empire with new acquisitions? Anything is possible!