The absolute monster $1.7 billion open for "Avengers: Endgame" capped a truly remarkable price spring for Walt Disney Co. (NYSE: DIS). Shares of Disney are up 26% since March 25.
But "Endgame" also gave the company's upcoming Disney+ streaming service a boost for its launch this coming November. Disney+ will be the only streaming service to find the blockbuster, as well as the entire Marvel library.
Wall Street sniffed all of this out in advance as the stock itself broke out to the upside from a three-year holding pattern. This is great news for long-term investors, but if you are looking for an investment with a short-term time horizon, buying here might be a bit riskier than you might like. After all, with a 26% gain since just March 25, the stock looks a bit stretched.
In fact, chart watchers will note that in the first day of trading after the release of "Avengers," the stock jumped to a new all-time high but closed lower on the day. Technical analysts call this a one-day reversal, and it is bearish in the short term.
It's nothing unusual either. Many stocks riding the hype of a coming event - be it earnings, a product release, or a change in a relevant regulation - often sell off right after the good news is released. Wall Street calls that "buy the rumor, sell the fact."
But Disney's breakout is good news for another stock we're watching, one with even higher upside.
5G Is Coming: The tech breakthrough of the century could rest on this $6 stock - get all the details here.
As the battle to capture share in the potentially $125 billion streaming industry, the likes of Disney, Netflix Inc. (NASDAQ: NFLX), and Amazon.com Inc. (NASDAQ: AMZN) are all throwing down the gauntlet.
But rather than try to pick the winner, Money Morning Executive Editor Bill Patalon sees a better opportunity in the hardware that delivers these services...
The Best Next-Generation Growth Stock
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
The real winner in the streaming wars will be Roku Inc. (NASDAQ: ROKU).
This over-the-top (OTT) media provider doesn't own television shows or films, but it gives the user the ability to stream video from any of the main streaming services and even from other places on the web. And it already commands 37% of the streaming device market, which is expected to reach $124.57 billion globally by 2025, according to a report by Grand View Research Inc.
As a traded stock, Roku is still a toddler, having just gone public in September 2017. Over that time, it outperformed the market, but it's been a rocky road. But Roku is getting a boost from the streaming wars. Netflix and Amazon are getting even more competition, and Apple Inc. (NASDAQ: AAPL) is entering the market with name recognition and a war chest of cash at the same time as Disney unleashes its massive library this fall.
That makes Roku the big winner as more and more users jump to these streaming services. Indeed, Roku's CEO Anthony Wood was excited over the prospect, saying, "The more services people can buy on our platform, the more money we can make."
Roku has grown its revenue for four straight years. And in 2017, it launched a platform for advertisers to begin displaying promotional ads to users on its devices. The following year, Roku's gross profits went up 66%, from $199,833 to $332,148.
The company also has an advantage over competing services, including Apple TV. Roku devices start at $29.99, while Apple's starts at $149. And customers will not have to venture into the Apple ecosystem to use it.
Today, the company is worth $7 billion. A share of Roku stock sells for $62.18, but some analysts project it could hit $85 in the next 12 months. Another says it could reach $97 by 2020, a 50% gain. And that could be just the start.
Get Ready for 5G NOW (Huge Tenfold Opportunity!)
A single company could be about to corner the entire 5G market!
Its patented technology is essential to an epic, global rollout that could create $12 trillion in new wealth, right here in America.
And you could turn every $1,000 you stake into $10,000! Go here now to find out how.