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Ticker Shock: Disney, Qualcomm Get Depressed; Priceline, Blockbuster Looking Chipper


Friday's top stories and stocks with potential to move.


Well, it's almost the weekend. TGIF.

Overnight, Asia was kind of a mixed bag. The Hang Seng was up a little over 3%, while the Nikkei was down more than 3%. Europe was in the green early this morning.

Disney (DIS)
After the close on Tuesday, Disney released its fourth-quarter numbers.

Mickey and crew sported an adjusted profit of $0.43 per share. Trouble is, the Street was at $0.49. Studio revenues were down 5%; its Parks and Resorts and Studio Entertainment segments also showed declines in operating income.

I don't know, folks - I wasn't left with that warm-and-fuzzy Disney feeling after seeing these numbers.

However, on the plus side, the release indicated that the company repurchased 139 million shares in the year just ended. And in the fourth quarter, Disney coughed up $1.5 billion to buy 46 million of its shares - to my mind, definitely a vote of confidence in the company's longer-term prospects.

I think the shares could take a hit in the days ahead, given the results and the lingering economic storm. I certainly don't have any intention of bottom-fishing today.

That said, I don't intend to take this baby off my radar screen. Disney has made it through some tough times before, and I suspect it will do so again.

Priceline (PCLN)
The company -- which is now, I think, forever associated with William Shatner -- released its third-quarter numbers after the close yesterday.

Excluding items, the company earned $2.39 a share, which was leaps and bounds north of the $2.10 a share the Street had been looking for.

But, thanks to the lovely economic situation we find ourselves in, Priceline offered up guidance of $1 to $1.10 (adjusted) for the fourth quarter. The Street was reportedly at $1.12.

So do I think the shares are a buy with them trading near their 52-week low?

I'm going to pass for now. Analysts will almost certainly be ratcheting down their estimates in the coming days and I think, unfortunately, that the stock could still come down. That said, don't despair Priceline bulls because I do think the stock will rebound in the year ahead.
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No positions in stocks mentioned.

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