Please help!!!!! Stocks ?

Question

Ok heres the problem over the summer i got assigned to these stock papers and we have to do at least three different companies asking What are the factors that will affect the profitability of any of these companies: Apple inc., Chuck E chese, and Walt disney

Answer 1

All companies are affected by the following (partial list).

1. consumer spending.

2. economy (effected by consumer spending).

3. company earnings (effected by consumer spending).

The US is a consumer driven economy.

Answer 2

Not sure what you need help with, however, to determine the future profitability prospects, you need to first perform a SWOT analysis to identify their strengths and weaknesses in comparison to their competitors.

Generally, what all these companies have in common is that they all operate within the consumer sentiment spending segment. In other words, if the economy slumps, so wiill their sales and thus profits because Apple, Disney and Chuck E Cheese all offer either luxury goods or entertainment - these are the first to suffer when the economy tightens.

Now, what causes the economy to tighten? Many factors for which I'm sure you guys are already discussing in class, but here are some factors:

Feds raise rates, commodities rise, dollar loses value, inflation, and many more.

Generally, these factors effect all companies, not just Disney, Apple, and Chuck E. Cheese.

Good luck, email me if you need some help.

Answer 3

I expect that the following are big factors.

Apple: Amount of extra money families have to spend.

Chuck: Number of children in society.

Disney: Number of children in society.