DISNEY: Lands Huge Endorsement

Disney has announced gaining the endorsement of ValueAct Capital Management for its current board slate. This support from ValueAct bolsters the position of Disney's CEO, Bob Iger, in the face of opposition from Nelson Peltz, a noted billionaire activist. Peltz has advocated for significant changes and proposed that he and former Disney CFO Jay Rasulo join the board. Trian Fund Management LP's firm has criticized Disney for long-standing compensation, governance, and succession planning issues.

Furthermore, Disney will engage in strategic consultations with ValueAct, signaling a proactive approach to enhancing business performance. This alliance is marked by a confidentiality agreement, allowing Disney to share in-depth information with ValueAct, as detailed in a joint statement released on Wednesday.

As the leading name in entertainment, Disney has faced calls from its investor base to improve operational outcomes, especially in light of substantial losses in its streaming ventures and a series of underwhelming film releases. Iger has made substantial cost reductions, including cutting 8,000 jobs, as part of a broader strategy to streamline expenses.

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FAMED: Investor Has Doubts

Renowned investor Steve Eisman, known for his incredible trade during the 2008 financial crisis as depicted in “The Big Short,” casts doubt over the prevailing optimism on Wall Street. Eisman points out the high hopes pinned on the “Magnificent Seven” tech stocks and the anticipation of several interest rate cuts throughout the year. He cautions about the market's low margin for error, stating, “Long term, I’m still very bullish. But near term, I just worry that everybody is coming into the year feeling too good.” This remark was made during his appearance on CNBC’s “Fast Money” this Tuesday.

He also spoke on the potential repercussions of the Federal Reserve's rate hike policies, suggesting that fewer rate increases in 2024 might unexpectedly impact the market. While the Federal Reserve anticipates three rate cuts this year, Eisman believes the market's more aggressive expectations might be misplaced.

Interestingly, Eisman, renowned for his great bet against the housing market in the mid-2000s, seems to be taking a favorable view of homebuilding stocks. He reasons, “The housing stocks are justified in the sense that the homebuilders have great balance sheets. They’re able to buy down rates to their customers so that the customers can afford to buy new homes,” also highlighting the current shortage of new homes in the market.

RIVIAN: Declines on Numbers

Rivian Automotive experienced a 10% dip in its share prices following the release of its latest vehicle production and delivery figures. Despite a rise in production during the fourth quarter, the electric vehicle manufacturer reported a decline in the number of vehicles delivered compared to the previous quarter.

Rivian disclosed that it delivered 13,972 vehicles between October and December, marking a 10.2% decrease from the deliveries made in the third quarter of 2023. However, these numbers did align with the anticipations of Wall Street analysts of ~14,000. 

Rivian's annual production reached 57,232 vehicles. This production volume exceeded Rivian's own forecast of 54,000 vehicles for the entirety of 2023.

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One of The Best Trades Ever

This investor made $100 million on one stock trade in one day and almost broke the stock market. You might know Paul Tudor Jones as the legendary philanthropist, advisor to multiple presidents, or as a guest on financial TV. However, Paul Tudor Jones is one of the greatest investors ever. In fact, he has built a billion-dollar net worth from just trading stocks. In 1987, the stock market was in a 5-year bull market.

However, on a day known as Black Monday, the stock market crashed 22% in just one day. This crash happened because stock traders were worried about “Anti-Takeover legislation” and feared the U.S. Dollar losing its status as the world reserve currency. On top of this, computerized trading led to a massive panic due to pre-set sell orders. Paul Tudor Jones knew that the stock market was incredibly overvalued and compared the stock market charts to the 1929 crash. This is when he took out a massive short position. While the stock market lost $1.7 trillion in value, Paul Tudor Jones profited $100 million on this same day. 

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The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions