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FINANCE
Understanding Pricing of a Stock
Please create three substantial’s paragraph
with numerical explanation for each peer.
In your response posts to at least two peers, discuss the following:
•
Do you agree with your peer’s argument to either invest or not
invest in their company? Explain why or why not. Make sure to
include information not previously shared by your peer.
PEER 1
Victoria
Hello Class!
My chosen company for the course is McDonald’s. The company’s stock price
history over the past year has seen a slight upward trend. The company’s stock price
was at $242.71 precisely one year ago; as of July 25, 2022, the price stands at
$249.07 (Yahoo! Finance, 2022). This means that it has seen an upward trend and an
overall increase in price by $6.36 or 2.62% However, over the year the price has
fluctuated wildly reaching as high as $268.06 on December 27, 2021, and dropping
as low as $226.87 on March 7, 2022 (Yahoo! Finance, 2022). I believe the price
fluctuations are a result of COVID19 pandemic and its aftershocks. The restaurant
industry was hit hard by the pandemic since they had to close indoor dining or reduce
seating capacity to maintain social distancing requirements. This led to a severe
decline in restaurant revenues and a subsequent decline in stock prices. The
company has seen a slight growth over the past year as businesses continue to
recover in the post-pandemic era.
I would recommend people to buy McDonald’s stocks especially if it sees
another drop like the one on March 7, 2022. The restaurant industry is recovering
after hitting an all-time low during the pandemic. McDonald’s too has seen growth in
several areas in the latest quarter, Q1 2022. The company’s revenues grew by 10.6%
in the most recent quarter compared to the previous quarter. Furthermore,
McDonald’s worldwide franchised stores grew by 13.4% and company stores grew by
6.5% (Parsh, 2022). The US store sales increased by 3.5% as well as people
continue to return to restaurants after the pandemic (Parsh, 2022). Finally,
McDonald’s stocks have always been reliable in terms of growth rate and dividend
off. A look at the stock price trend for the past 5 year reveals that the company’s
stock price grew from just $159.97 on August 1, 2017 to the current price of $249.07
today (Yahoo! Finance, 2022). This has resulted in a significant increase in wealth of
investors who bought McDonald’s stocks 5 years ago. Therefore, the only way the
business can go now is up so it is a good time to buy McDonald’s stocks.
PEER 2
Crystal Baker-Breault posted Aug 3, 2022 2:54 PM
Subscribe
The Company that I have selected is Disney. Below you will find how
they have been doing currently with numbers obtained from Mergent
online. As well as my argument as to why now is a good time to
invest.
Yesterday
5 Days
30
Days
Close
104.71
106.10
96.14
Volume
9,087,773.00 10,315,461.00 N/A
Yesterday
52 Week High/Low :
185.91 – 91.84
% Price Change (100 Days) :
-12.71
200-Day Moving Avg. :
121.40
5 Days
30
Days
Disney is a diverse company, they range from having amusement parks,
streaming services, Pixar and Marvel Studios, ESPN, 21 st Century Fox,
Lucasfilm, ABC and BAMTech. Investing in a company that has
diversification is important because, this typically means higher
financial returns, better talents are likely to be present in diverse
companies and they continue to improve on customer relations.
Disney has had a fluctuation in their stock pricing in the last year, which
can be related to the pandemic. The pandemic shut many movie
studios down and those venues are still not seeing the same volume of
movie goers as they were pre-pandemic. Their biggest attractions and
money makers which are their amusement parks saw a significant
decline in attendance in 2021, again most likely due to the restrictions
and fears that the pandemic caused.
The price change of -12.71 reflected in the last 100 days is lower than it
was in the year 2021.
Disney was hit hard during the onset of the pandemic. However, it
appears to be on the rise and a good time to invest in Disney, not only
because of the company’s diversification but experts are predicting that
a sequel of Avatar their highest grossing movie will bring in more than
$1 Million in revenue. If this movie generates a similar revenue to the
first Avatar, movie “Disney shares could be upwards of 1.4 Billion.”
(Tatevosian). Now is a great time to invest shares are at a fair cost. The
highest a share sold for Disney was on March, 8, 2021 for 201.91 and
the lowest shares sold for 52week, low was 90.23. The 52week current
high/low 1.61 higher than the low and only 16 lower than the highest
ever share price.

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