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Fall 2019

Under Armour (UA)

Under Armour stock has recently plummeted over 16% despite better than expected earnings during the third quarter. This is due to the announcement that Under Armour is currently being probed by the department of justice and the Securities and Exchange Commission. The SEC and Justice Department are examining whether Under Armour has been shifting sales from quarter to quarter to make their stock appear better to potential investors. Under Armour would do this by recording revenue before it is earned or by dating expenses to a later date to make earnings appear healthier than they actually are. The announcement of this probe, coupled with frequent changes in financial management over the past couple of years, has caused UA sales to decrease to the lowest it has been in 2019.

 


Fall 2019

The Gap (GPS)

The Gap store has loses of over 29% within the past year. Gap is the parent company of Banana Republic, Athleta, Old Navy, Intermix, and Hill City. Of all these companies, the only one currently doing well is Old Navy. Due to decrease in sales Gap plans to close roughly 230 stores over the next two years. In response Gap and Old Navy are separating into two different corporate entities. One reason they have chose to separate is so they can work on problems independently of each other. Old Navy becoming its own stock will also attract more investors due to the expected growth of the Old Navy brand.

 


Fall 2019

Southwest Airlines (LUV)

In the third quarter of 2019 many airline companies have seen higher than expected increase in earnings per share. This is due to recently low fuel cost. Though Southwest Airlines has seen higher than expected growth, it wasn’t as high as it could have been. Unfortunately, Southwest Airlines lost money due to the Boeing 737 Max jets (of which Southwest owns 34) being grounded. It is also expected to increase cost of non-fuel units in the December quarter due to decreased capacity on flights. The 737 Max is grounded due to two aircrafts falling out of the sky in the past year. Due to these incidents 346 passengers have died. Boeing is currently going before congress due to these incidents.

 


Fall 2019

Under Armour(UA)

Kevin Plank, The CEO of Under Armour, has announced he will be resigning and leaving the company in the hands of the COO, Patrik Frisk. Since that announcement the price of UA stock has increased. Many investors are seeing Patrik as a good fit as CEO. Before becoming COO of Under Armour Frisk has previously worked as part of the VF Corporation and served as CEO of the ALDO Group. Many are hoping the change in leadership will revitalize the company and bring it to the forefront of the industry.

 


Fall 2019

Facebook (FB)

Many Attorney Generals have joined the legal battle investigating Facebook’s antitrust violations. 47 state attorneys’ generals are now holding an investigation on Facebooks use of consumer data. The US currently has Antitrust regulations to prevent companies from having to much power in an industry. The Government works to prevent this by preventing mergers, breaking up big companies and fining behavior that prevents competition. Facebook is under investigation due to its habit of preventing competition by buying tech firms or stealing features from their competition (snapchat stories vs. Instagram stories). These antitrust probes aren’t the only thing to affect Facebook recently. Over the past year Facebook has been under scrutiny for its plan to launch its own crypto currency platform and lawsuits due to its collection of facial recognition data and its 2018 data breach. This has caused Facebook stock to decline in value.

 


Fall 2019

Sirius XM (SIRI)

Over the past five years shareholders of Sirius XM (SIRI) have seen a 93% increase in share price, much higher than the market return of 46%. Over these past five years Sirius has been able to grow its earnings per share an average of 32% which is higher than the overall average annual increase of 14%.

 

This means 2 things, 1. (SIRI) stock is undervalued. Though (SIRI) stocks current price is $6.45 per share; the Fair Value of the stock is estimated to be around $7.36. When a stock is undervalued it means it will give investor a higher rate of return for lower cost. 2. The market is seemingly pessimistic about the future of the company. When a stock is undervalued it means more people should be investing in it and they aren’t. Though the gains are there many potential investors don’t want to risk their investments in (SIRI) because they don’t believe the company will continue to increase for years to come. .

 


Fall 2019

Electronic Arts (EA)

Electronic Arts has been one of the best performing public traded video game companies. Despite the large number of competitors in the industry, EA has been able to maintain success through the annual release of some of its most popular games. One example was the release of FIFA 20. FIFA introduced a new game mode, Volta Football Mode, which brings FIFA to the streets and futsal courts where players create new characters based on individual style. It has become the 2nd most played mode on the game and has reenergized the FIFA fan base. In addition, players have created up to 5 million new avatars, further proving the game’s wide appeal. Many financiers and investors however, believe that EA needs to do more in terms of its gaming portfolio. Revenue stems mostly from their sports and Star Wars games. Others have cited EAs relatively low exposure to emerging gaming markets in Asia as a cause for growth concern as well. EA has been successful, but look for the company to try new strategies and gaming avenues.

 


Fall 2019

Ford (F)

Ford Motor Company has seen its stock price rise and fall in 2019. Starting at $8.29 a share, Ford’s price rallied to $10.42 in July, but since then it has seen the price fall back to early year values, currently trading at $8.60. A big reason for the mixed success for Ford over recent years has been its struggle to sell its products throughout international markets. These potential consumers can offer a huge boost to sales and overall profits. However, Ford’s international sales are not going well. Demand for Ford vehicles, specifically in China, is low. This has investors and financial experts not to confident in the profitability of Ford. Ford has also seen a competitor, Tesla, surge in sales and is now worth more than Ford and fellow competitor GM. Ford has a lot of work to do in order to convince investors that the company is worth investing in.

 


Fall 2019

Walt Disney (DIS)

The year began with Walt Disney stock valued at $108.97. As of October 23rd, it is now priced at $131.13 per share. Walt Disney has had an eventful year that has raised their value. This year they opened new attractions at their Disneyland and Disney World theme parks modeled after Star Wars. With the release of “Avengers: Endgame,” Disney has earned the title of releasing the highest grossing film of all time. In March, Disney became the world’s biggest media company when they bought 21st Century Fox’s media assets. On November 12, Disney is set to launch its own streaming service, Disney+, in the United States. Disney has plenty of big movie releases planned as well including “Frozen 2” and “Star Wars: The Rise of Skywalker” just this year.

 


Fall 2019

Coca-Cola (KO)

Coca-Cola(KO) has seen it’s stock price rise in 2019. After a low point at $44.69 per share, Coca-Cola is now being traded at $54.65 per share as of October 23rd with a high of $55.77 on September 4th. One of the biggest drivers of success for Coca-Cola has been the sale of their Coke Zero line. This newly formulated type of coke has zero sugar and zero calories. It also tastes more like the original Coca-Cola drink, aiding to its appeal.

 

Over the last quarter, thanks to its booming sales of Coke-Zero and the introduction of healthier options such as smaller cans. Such policies may make the company more attractive to younger consumers. Coca-Cola figures to keep pushing these measures to continue their strong 2019!

 


Fall 2019

Sony Corporation (SNE)

Sony has partnered with Yamaha Motor Company in the launch of a mobile entertainment service. The service involves a vehicle with image sensors stronger than human eyes. The recorded images are displayed to passengers on an installed screen and slowly layers elements of mixed reality in.

 

In partnership with music industry moguls and famous musicians, Sony will be releasing a new music format called 360 Reality Audio. The program will be available on music streaming services: Tidal, Deezer, nugs.net, and Amazon Music. The format allows users access to an experience similar to that of being in attendance at a concert.

 

Sony has announced a merger for a new global anime streaming service. Anime content from Japan will be distributed across the globe to the individual services that have been joined under the merger. .


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