Will blockbuster hits move the needle?

The Daily Breakdown takes a look at Disney’s Moana 2 as it smashes box office record. Other movies are doing well, too.

Wednesday’s TLDR

  • Disney’s Moana 2 sets records
  • Palo Alto Networks hopes for a breakout
  • CRM, CHWY earnings in focus

What’s happening?

The box office has been heating up lately. That’s as Disney’s Moana 2 had a record-setting performance during the Thanksgiving weekend. 

The film set new records across the board, “notching an estimated $225 million since opening on Wednesday” and grossing $389 million globally. “It was also the highest 5-day Thanksgiving all-time box office, beating Frozen 2’s second weekend of $125 million in 2019,” according to the company. 

It’s not just Disney’s Moana 2, though. 

Gladiator II (from Paramount Pictures) and Wicked (from Comcast’s Universal Pictures) both had strong showings as well. And even though shares of AMC Entertainment haven’t reflected the good news — up just 1.2% in the past week — the company reported an astonishing amount of customers. 

According to the company, “Based on attendance at its U.S. theatres, AMC enjoyed its busiest pre-Thanksgiving Wednesday, busiest Thanksgiving Day, busiest Black Friday, and busiest 5-day Thanksgiving holiday period in the Company’s 104-year history.”

Since reporting earnings in mid-November, Disney shares are higher by 13.4%. However, Comcast and Paramount haven’t done quite as well, roughly flat over the past month. 

Still, investors are hoping we return to an environment where blockbuster films draw in massive crowds and deliver big boosts to corporate earnings. Will 2025 have more in store?

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The setup — PANW

Shares of Palo Alto Networks, a leading cybersecurity firm, continue to show promise after earnings. While the stock was a bit choppy after the report on November 20, it’s trying to resolve higher.

The chart below looks a little chaotic, but it illustrates how well PANW has done over the last few months — particularly if it’s able to clear downtrend resistance (drawn in blue). 

If it can do so again, we could see more bullish momentum in the days and weeks ahead. 

Daily chart of PANW stock, for The Daily Breakdown
Chart as of the close on 12/4/2024. Source: eToro ProCharts, courtesy of TradingView.

If the stock can break out, the recent all-time high near $410 could be in play. Above that and perhaps more upside can ensue. 

On the flip side, failure to break out will have investors looking for support. Right now, that’s the $380 to $385 zone and the 21-day moving average. If those measures fail, bearish momentum could accelerate. 

Keep in mind, Palo Alto Networks has a 2-for-1 stock split coming up on December 16th. To learn more about stock splits, check out this article

What Wall Street is watching

CRMSalesforce is set to open at all-time highs on Wednesday despite a mixed quarter of headline results. Earnings slightly missed expectations, while revenue topped consensus estimates. Guidance was a bit mixed too, although close to analysts’ expectations. Overall though, investors seem to like what the firm delivered. 

METAMeta stock has rallied almost 7% in the last two days, sending shares to new all-time highs. Now up more than 70% in 2024, Meta has soared to a market cap north of $1.5 trillion and has helped lead the communications sector ETF — the XLC — higher. Check out the charts for META

CHWYShares of Chewy are in focus this morning after the online retailer reported mixed quarterly results. Earnings of 20 cents a share missed expectations of 17 cents a share, while revenue of $2.88 billion grew 4.8% and beat estimates of $2.86 billion.

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.