Disney has to tell investors more about its streaming plans in order for the stock to rise significantly, analysts at Barclays wrote in a note out Wednesday. "The two major variables that the company needs to quantify during its investor day [on April 11] are in our opinion: (a) the scale of its OTT subscriber opportunity and (b) the scale of its investments," Barclays wrote. "We believe these variables are likely to be more important for valuation than point estimates such as EPS targets."
"Anything less (or silence on TAM [total addressable market]) would be a disappointment for investors," the analysts said.
Disney has already launched ESPN Plus and plans to launch its family-friendly streaming platform, Disney Plus, in September. The entertainment giant recently closed its purchase for most of Fox's assets, and also owns a majority of Hulu. While Disney is going up against Netflix (NFLX) - Get Report , Amazon's (AMZN) - Get Report Amazon Prime, and Alphabet's (GOOGL) - Get Report YouTube TV, Barclay's is optimistic. Barclays is looking for 170 million subscriber additions for Disney by 2025, which the analysts say is a conservative estimate. "This would make Disney's OTT comparable in scale to Netflix and Amazon," Barclays said.
Taiwan Semiconductor (TSM) - Get Report shares rose 1% to $41.68 a share Wednesday, after the company said it will boost production, as demand for its chips is rising. That's a key sign for the rest of the semiconductor industry, which has experienced pricing headwinds resulting from oversupply -- and some would say weak demand. Advanced Micro Devices' (AMD) - Get Report performance was particularly linked with the news from Taiwan Semiconductor, RealMoney's stock of the day, as AMD rose as much as 10% Wednesday. Also, Taiwan Semi is an Apple (AAPL) - Get Report and Samsung (SSNLF) supplier, so this could be a positive indicator for smartphone sales.
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