This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Two New Ways for Investors to Play Apple's Dominance

Stocks in this article: AAPL DIS PCLN IACI GOOG AMZN

DIS Chart DIS data by YCharts

Walt Disney

With smartphones now seemingly ubiquitous and tablets increasingly common, Disney's vast trove of content puts it in a great position. "We really see Disney as the largest benefactor of the mobile trend in the content companies," said SureVest's Luna, also pointing to IAC/Interactive. "I don't think it's any coincidence that these stocks have really been rallying over the last year and a half, two years - these were stocks that were dead money for quite a while."

Disney, a Dow component led by Wall Street darling Bob Iger, recently delivered the largest quarterly earnings in the company's history and the entertainment giant's shares have climbed an impressive 41% this year.

The Burbank, Calif.-based company is no stranger to the mobile market. In June, for example, Disney launched three streaming apps for the iPhone and iPad, the result of a major distribution deal with Comcast (CMCSA).

The launch gives Comcast's Xfinity TV customers who subscribe to the Disney Channel, Disney XD and Disney Junior networks access to the WATCH Disney Channel, WATCH Disney XD and WATCH Disney Junior live streaming apps. The move came followed a similar arrangement to live stream ESPN programs to Xfinity TV customers via iOS devices.

In 2011, Disney's ESPN subsidiary also launched a live streaming ESPN app for smartphones and tablets with Time Warner Cable (TWC), Bright House Networks and Verizon (VZ) FiOS TV subscribers.

Speaking during Disney's third-quarter conference call recently, CEO Bob Iger said that he's pleased with the response to these efforts.

"We're very encouraged by the apps that we launched through Comcast and the app, the ESPN app that was launched by Time Warner about a year earlier," he replied, in response to an analyst's question. "The take up rate in terms of downloading the app and ultimately authenticating has been impressive and what's really impressive, particularly from the Disney Channel side is the number of shows that have been viewed on that app."

The CEO noted that people, particularly children, are willing to watch long-form video on mobile devices. Iger also described a "veritable queue" of distributors lining up to carry Disney's streaming apps.

Clearly, Disney's seeing great momentum in this space. Last week the company announced a major distribution deal with Cablevision (CVC) to deliver a host of sports, news and entertainment via traditional television, tablets, phones and handheld devices. The deal encompasses around 70 services in Disney's portfolio, including ABC, Disney Channel, Disney Junior, ESPN and ESPN 3.

Live streaming, though, is just one part of the Disney empire, and the company has been quick to seize the opportunities offered by gadgets, whether for interactive books, games and even travel apps. A quick search for the term 'Disney' in Apple's App Store, for example, reveals 185 iPad apps and 255 iPhone apps.

Then there's comic giant Marvel, which was acquired by Disney in 2009. The following year, the company unveiled its critically-acclaimed Marvel comic app which became the top free iPad comic app within a day of its launch.

Underlining the seismic shift towards handheld gadgets, Marvel recently added digital codes to a number of super hero comics sold in stores, such as Avengers and Captain America. The codes, which clearly aim to lure readers into the lucrative online media market, provide free digital versions of each comic via iOS and Google Android devices.

"If you look at the tablet market for young children, Disney is pretty much attached to everything we look at," noted SureVest's Luna. "They have so many ways to leverage each new consumer - from a tablet going into a household, it opens the door to other merchandise, theme parks, and also television."

Apple's iPad, of course, has already enjoyed phenomenal success in the education market, increasing childrens' familiarity with the technology. With rumors intensifying that the company is about to launch a smaller-screen iPad Mini, better suited to smaller hands, Disney must be eyeing yet more revenue.

TheStreet Ratings rates give Disney an A+ 'buy' rating thanks to its stock performance, as well as the company's strong earnings and revenue growth.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,802.82 +24.67 0.14%
S&P 500 2,068.71 +7.48 0.36%
NASDAQ 4,757.7510 +9.3550 0.20%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs