Blog - Mid-Week Stockbits July 24th, 2019

Mid-Week Stockbits July 24th, 2019

Jul 24, 2019

Disney Dominates the Box Office

Disney’s live action ‘The Lion King’ hit theatres to a strong $185 million opening weekend (in North America) which makes it the largest domestic debut for a PG-rated film. It’s no secret that Disney (DIS) has the box office wrapped around their fingers. Earlier this week Marvel’s Avengers: Endgame became the highest grossing movie of all time earning $2,790.2 billion worldwide, passing Avatar.

Since purchasing Marvel in 2009, Disney has banked over $18 billion at the global box office. To put that into perspective, Disney originally purchased Marvel for $4 billion. Just as Marvel wrapped up the previous 10 year 23 film slate, they have announced ‘Phase 4’. What this means is neither Disney, nor Marvel show any signs of slowing down. Oh, and did we mention that Disney also has the Star Wars franchise along with the huge catalogue of animated movies like Frozen in their arsenal as well.

Microsoft Sets Profit Record

Despite Microsoft (MSFT) just meeting quarterly expectations, their products seem to be growing. Q2 saw a profit record for the company with a $13 billion net income. The company continues to see strong growth in its personal computing products with Surface coming in at a total of $1.86 billion up 39% from previous quarters. In addition, the gaming side saw an increase of 8% largely attributed to the Xbox software and service. Microsoft continues to adapt and dominate the business and productivity side, and have regained rank as #1 in cloud services. Microsoft also remains the world’s only trillion dollar company.

Uber Launches Membership Service

Uber (UBER) has begun pilot testing its new membership service in the United States. For a monthly fee, they will provide a fixed discount on each Uber ride, free delivery of its food service Uber Eats, and other perks. Uber aims to create a loyal customer base in hopes that users who sign up will avoid using its main competitor, Lyft (LYFT). Currently Uber shows no signs on extending this program outside of Chicago or San Francisco but if the model is deemed successful you can expect it to roll out to all cities that have Uber.

What does this mean? Uber looks to position themselves in the subscription commerce model which companies like Netflix (NFLX) and other streaming platforms use regularly. Uber aims to take advantage of this model to encourage consumers to use their products regularly. Analysts expect the subscription model to be valued at over $500 billion by next year.