Federal Bank Meeting Overview; Facebook, Netflix & Disney

By Elizabeth Martinez
Money and Investing Writer

Before the Central Bank’s meeting on Tuesday and Wednesday the 20 and 21 of this month, it was predicted that a rate spike was less likely to occur, due to the Federal Government urging prudence in policy making.

It is clear to see after this meeting, that this prediction was only partially correct, as the spike is not expected to occur now, but in December.

This has had the greatest impact on investors in the following companies because this suggests that it may be a better time to buy and sell stock now, as opposed to later in the year.

Facebook Inc. (NASDAQ:FB) has seen a slow but steady rise in its stock since 2013.

This could be in part because of their initiative to gain a global presence.

However, this steady rise has been at a much smaller rate than that of some other giants in the field, like Microsoft (NASDAQ:MSFT) which has seen a much steeper rise since the beginning of 2013. This is likely due in part to Microsoft’s constant innovation, and distribution of new products.

Netflix (NASDAQ:NFLX) stock has generally increased in value over the last decade.

That being said, as of the last few days, we have seen its stock start to decline.
Even though this is only one week’s worth of data, it is still worth considering when choosing your upcoming investments.

This is similar to what has been seen from CBS (NYSE:CBS), which saw a steep rise during the middle of 2009. Their stock has plateaued since then, and has actually started to decrease as of the last month.

These two companies, along with Facebook, have not been able to re-gain their initial momentum, likely due in part to the nature of their main products, which seem difficult to alter.

Sure, Facebook can add some new buttons, and Netflix can gain a larger movie database, but without any major additions or alterations, these small changes simply are not enough to keep consumers interested in what they have to offer.

Following Tuesday’s presentations from Netflix and CBS, media giant Walt Disney Co (NYSE:DIS) is expected to present at Goldman Sachs’ annual Communacopia event, after Disney’s shares closed up .35 percent on Tuesday September 20.

Disney’s Stock has seen a steady rise since February of 2009. It’s most recent increase has largely been due its successes with recently released movies such as Alice Through The Looking Glass, and Finding Dori, as well as its expected success with those movies that have yet to come out, such as Moana, and the fifth Pirates of The Caribbean movie (Dead Men Tell No Tales).

While many giants in the industry can expect to see continued growth over the next few months, those that have started to see a plateau or decrease in their earnings should be aware of upcoming events in the market, especially with an expected rise in rates in December.

Investors should keep on the lookout for the market to react to those, and any other changes which may occur in the weeks to follow.

A version of this article appeared in the Tuesday, September 27th print edition.

Contact Elizabeth at
elizabeth.martinez1@student.shu.edu

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s