$Walt Disney(DIS)$ Earnings: Disney's PE is 133.9, about 4.5 times higher than the S&P 500 average as a whole. Growth: Disney's forward earnings multiple of 36.1 is still more than 50% higher than the S&P 500's, making Disney look overvalued. Disney's forward PE ratio is also more than 50% higher than the average multiple of its communication services sector peers, which are averaging a 21.5 forward earnings multiple. Yet when it comes to evaluating a stock, earnings aren't everything. The growth rate is also critical for companies that are rapidly building their bottom lines. The price-to-earnings-to-growth ratio (PEG) is a good way to incorporate growth rates into the evaluation process. The S&P 500's overall PEG is curre

Typically, a beat in earnings will drive a stock price up after the market opens. But realistically, it's not uncommon to see a stock's price fall after beating earnings.An interesting case to study is the brilliant Q2 and Q3 (2021) earnings results from $Apple(AAPL)$. The superb earnings were not as well-received by investors. Despite the strong quarterly results $Apple(AAPL)$.If you are an $Apple(AAPL)$investor who wondered after a remarkable Q2 and Q3 earnings report, why the value of your stock was going down rather than up...The possible reasons:1. Warning that chip supply constraints could impact iPhones and iPads will weigh on the short-term outlook.

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. Inflation is the decline of a given currency's purchasing power over time; or, alternatively, a general rise in prices. So CPI is the most widely used measure of inflation.What happened recently?U.S. consumer prices overall rose 0.4% in September, pushing the y-o-y gain to 5.4%. CPI increased slightly more than expected in September as food and energy price rises offset declines in used cars ."Food and energy are more variable, but that's where the problem is," said Bob Doll, chief investment officer at Crossmark Global Investments. "Hopefully, we start solving our supply shortage problem.”The International Mon

Most traders have heard about Dow theory and higher highs and lower lows. This article is a quick recap of this very important trading topic.Highs and lows are major reference points for traders. The reason for this is their close link to the trend definition in chart analysis:1. Higher highs + higher lows define an upward trend.2. Lower highs +lower lows define a downward trend.Many traders pay attention to the progress of these points. Especially in daily charts they are regarded as key points. If the market price succeeds in surpassing yesterday's high, the market is bullish. This is especially true if there is an upward trend on the daily chart, as well. Vice versa, if the market price reverses below yesterday's low, the market is bearish, particularly when complemented by a downtrend

$Alibaba(BABA)$Alibaba, as a business, is at a pivotal moment. Its management had reassured investors back in April saying that there won’t be any material change in their business due to the regulatory rulings. Yet, they had acknowledged in August that they were still studying the impact of these regulatory rulings.We are in the process of studying the regulatory requirements, evaluating the potential impacts on our relevant businesses, and we will respond positively with actions.This discrepancy raises the possibility that Alibaba management’s reassurance may have merely been an educated guess at the time and its business might actually deteriorate in the months to come. This piles on to a myriad of other risk factors surrounding Alibaba. Therefore

$Facebook(FB)$is planning to change its company name next week to reflect its focus on building the metaverse, reported by The Verge.Over the years, the $960 billion market cap giant has been pouring tons of resources to build up its VR/AR arm, in the hope to become the leader of this growing economy. Facebook already has more than 10,000 employees building consumer hardware like AR glasses that Zuckerberg believes will eventually be as ubiquitous as smartphones.The metaverse is "going to be a big focus, and I think that this is just going to be a big part of the next chapter for the way that the internet evolves after the mobile internet," Zuckerberg told The Verge's Casey Newton this summer. "And I think it's going to be the next big chapter for our

Keep perspective: Downturns are normal1. On average since 1926, stocks have dipped into bear market territory every 6 years with losses averaging almost 40%.2. But while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.Get a plan you can live with – through market ups and downs1. Your mix of stocks, bonds, and short-term investments will determine your potential returns, but also the likely swings in your portfolio.2. Pick an investment mix that aligns with your goals, timeframe, and financial situation, and you can stick with despite market volatility.Focus on time in the market – not trying to time the market1. It can be tempting to try to sell out of stocks to avoid downturns, but it’s hard to time it right.2. If you sell and are stil

Nestled in Rivian's S-1 IPO filings was a note that the EV company's "cornerstone investors" had "indicated an interest" in buying up to $5 billion worth of its stock at its IPO price. One of those parties was Amazon, and the American e-commerce giant appears to have pulled the trigger Friday afternoon on its buy.Per a recent Form 4 filing, Amazon bought roughly $200 million worth of Rivian stock at its IPO price of $78 per share. The buy worked out to 2,564,102 shares in total, worth a hair under the target dollar amount of a flat two hundred million at their purchase price.Amazon now owns a total of 158,363,834 shares of Rivian, valued at some $20,579,380,228.3 at the company's closing price of $129.95 per share set this afternoon. As Amazon paid just $78 per share for its most rece

Bollinger Bands are a type of price envelope developed by John Bollinger (Price envelopes define upper and lower price range levels.) Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price.Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev. The default values are 20 for period, and 2 for standard deviations, although you may customize the combinations.Bollinger bands help determine whether prices are high or low on a relative basis. They are used in pairs, both upper and lower bands and in conjunction with a moving average. Further, the pair of bands is not intended to be used on i

On Wednesday, the Fed said taper may come soon if the economy continues to progress, but didn't announce the specific dates.This should be the biggest news for the financial market. But wait... what is taper and why is it so important？What is taper?Before talking about taper, we should know what QE is — the opposite of taper.When the economy is slagging, the central bank tends to lend more money to the market. This aims to increase consumption and investment, which is a good way to take the sluggish market back to normal.To lend money out, the central bank can lower interest rates or purchase assets such as bonds from the market. These measures are summarized as QE (Quantitative Easing).Therefore, the opposite of QE — taper, is taking money back to the central bank, by raising interes

Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction over a period of time. However, whereas SMA simply calculates an average of price data, EMA applies more weight to data that is more current. Because of its unique calculation, EMA will follow prices more closely than a corresponding SMA.How this indicator works1. Use the same rules that apply to SMA when interpreting EMA. Keep in mind that EMA is generally more sensitive to price movement. This can be a double-edged sword. On one side, it can help you identify trends earlier than an SMA would. On the flip side, the EMA will probably experience more short-term changes than a corresponding SMA.2. Use the EMA to determine trend direction, and trade in that direction. When the EMA rises, you