The US stock market opened higher with the Dow climbing closer to the 20,000 level, extending the post-election rally. Later today, Federal Reserve Chair Janet Yellen is expected to give a speech on the state of the labor market, which will be the last speech of this year and will be the first since the Fed hiked interest rates.
Meanwhile, a number of stocks are in the spotlight following several developments. In this article, we are going to take a closer look at the events surrounding Apple Inc. (NASDAQ:AAPL), Walt Disney Co (NYSE:DIS), Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY), JAKKS Pacific, Inc. (NASDAQ:JAKK), and Mitel Networks Corp (NASDAQ:MITL). In addition, we’ll take a look at the smart money sentiment towards each stock in order to gain some perspective regarding their long-term profitability.
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Apple Inc. (NASDAQ:AAPL)‘s stock inched up by some 1.15% amid news that the tech giant has appealed the EU $14 billion tax demand. The company argued that EU regulators intentionally picked it due to its popularity and success. Therefore, regulators ignored the opinion of tax experts and disregarded Ireland’s position while moving on with its case. Ireland will also join Apple Inc. (NASDAQ:AAPL) in its appeal, which will make the situation for Brussels more difficult, since it creates a conflict with another community country in a period marked by tension and escalating anti-EU sentiments across a number of member states. The case will probably represent a strong precedent, which explains Ireland’s move to stand by Apple Inc. (NASDAQ:AAPL)’s side, since the country managed to attract a number of multinationals via its tax deals. Among the investors in our database, Apple registered an increase in popularity during the third quarter, as the number of funds long the stock jumped to 145 from 116.
Walt Disney Co (NYSE:DIS)‘s stock opened in the green today and keeps trading higher after the company’s “Rogue One” scored $155 million over its opening week-end. The amount was the second-largest registered in an opening weekend in December in North America, topped only by last year’s “Star Wars: The Force Awakens”, which grossed $248 million. In Europe, the movie registered sales of $135.5 million, which combined is a bit shy of the expected total $300 million, although the movie has yet to open in South Korea and China. A total of 51 funds tracked by Insider Monkey held shares of Walt Disney Co (NYSE:DIS) heading into the fourth quarter, up by seven funds over the quarter.
On the next page, we’ll take a closer look at Nintendo, JAKKS Pacific, and Mitel Networks.
Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)‘s stock plunged on Friday and has lost around 4% so far today after the company had released its Super Mario Run on Apple devices. Even though the game racked up 2.85 million downloads on the first day, the stock has declined due to investors expectations from the game, having already been priced in before. Moreover, the $10 price for the game is considered a bold move by Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY), since most developers generate revenue by selling premium content, while offering the game for free. Overall, analysts estimate the game to generate revenue between $300 and $500 million and it represents Nintendo’s complete entrance in the mobile game market. Despite the recent declines, Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)’s stock is still over 50% in the green year-to-date, due to the success registered by Pokemon Go.
JAKKS Pacific, Inc. (NASDAQ:JAKK)‘s stock is among the top losers today, as it has plunged by more than 30% since the opening bell, after the company lowered its revenue guidance for 2016. The company said it expects revenues of around $700 million, which is 7% lower than previously anticipated, while EPS is seen between $0.01 and $0.05. In a statement, JAKKS Pacific, Inc. (NASDAQ:JAKK) said the lower outlook is due to lower-than-expected sales registered in some key product lines. Smart money investors don’t seem particularly fond of JAKKS Pacific, Inc. (NASDAQ:JAKK), as just 12 funds tracked by us held shares of the company at the end of September, having amassed around 17.50% of its outstanding stock.
Last but not least, shares of Mitel Networks Corp (NASDAQ:MITL) opened higher, but have given up the gains and are currently around 1% in the red on the back of the company announcing that its mobile operations unit Mitel Mobility would be sold to Xura. The deal is worth $360 million in cash and $35 million in a non-interest bearing promissory note and equity interest in Sierra Private Investments, which owns Xura. Following the sale, which preceds Mitel’s failed attempt to acquire Polycom, which had been bought by Siris Capital, Mitel Networks Corp (NASDAQ:MITL) will streamline its operations and will focus it on unified communications or will seek another acquisition. Mitel Networks Corp (NASDAQ:MITL) saw 19 funds from our database holding shares at the end of September, versus 11 funds at the end of June.
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