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  • Disney stock dives 10% after earnings and revenue miss, sales growth forecast to slow after record year

    Disney stock dives 10% after earnings and revenue miss, sales growth forecast to slow after record year

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    Walt Disney Co. wrapped up its fiscal year with record sales and its best revenue growth in more than 25 years, but executives predicted much slower sales increases in the year ahead while missing expectations for fourth-quarter earnings and sales, sending shares down more than 10% Tuesday afternoon.

    Disney
    DIS,
    -0.53%
    reported fiscal fourth-quarter net income of $162 million, or 9 cents a share, on sales of $20.15 billion, up from $18.53 billion a year ago but more than $1 billion short of expectations. After adjusting for amortization and certain investment changes, Disney reported earnings of 30 cents a share, down from 37 cents a share a year ago.

    Analysts surveyed by FactSet had on average expected adjusted earnings of 56 cents a share on revenue of $21.27 billion.

    Disney executives blamed a number of factors for the revenue miss, including lower content sales because they had fewer theatrical films on the calendar; underperformance of the parks and media divisions; and seasonality of its fourth quarter, which tends to be the lowest for margins.

    For the full fiscal year, Disney reported record sales of $82.72 billion, more than 22% higher than the previous year, the strongest annual sales growth for Disney since the 1996 fiscal year, according to FactSet records. Profit grew to $3.19 billion from $2.02 billion the year before, but is nowhere close to prepandemic Disney earnings, which hit eight figures in both 2019 and 2018.

    In a conference call Tuesday afternoon, though, Chief Financial Officer Christine McCarthy suggested that revenue and profit growth will slow to single digits on a percentage basis in the current fiscal year, missing Wall Street’s expectations. Analysts’ average revenue projection for Disney in the new fiscal year suggested revenue growth of about 13.9% and operating-income growth of roughly 17.4%, according to FactSet.

    “Putting this all together, assuming we do not see a meaningful shift in the macroeconomic climate, we currently expect total company fiscal 2023 revenue and segment operating income to both grow at a high-single-digit percentage rate versus fiscal 2022,” McCarthy said.

    Disney shares initially fell more than 6% in after-hours trading following the release of the results, but plunged anew to a decline of more than 10% after closing with a 0.5% decline at $99.94.

    Disney has been helped by the return of visitors to its theme parks in the third year of the COVID-19 pandemic, as well as a recovering movie business. The main attraction for investors, though, has been growing Disney’s streaming efforts — total streaming subscribers topped Netflix Inc.’s
    NFLX,
    +1.88%
    subscriber total last quarter, and grew its lead in Tuesday’s report, with Disney adding 12.1 million net new subscribers, while analysts on average expected 10.4 million.

    Disney’s streaming growth has hampered its profitability, however, as the company spends to add content to its streaming services in order to compete with Netflix. Those days appear to be coming to an end as Disney struggles with profit.

    “The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate,” Disney Chief Executive Bob Chapek said in a statement announcing the results. “By realigning our costs and realizing the benefits of price increases and our Disney+ ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future.”

    Disney’s largest business segment, media and entertainment distribution, reported sales of $12.73 billion in the quarter, down from $13.08 billion a year ago; analysts on average predicted $13.86 billion. Direct-to-consumer sales, which includes streaming services as well as some international products, hauled in $4.9 billion, compared with analysts’ forecast of $5.4 billion on average.

    The trajectory of Disney’ meteoric rise as video-streaming market leader is likely to continue once its advertising-supported service debuts in the U.S. next month, according to Wall Street analysts, after Netflix launched its rival offering on Nov. 3. Disney has leaned heavily on its stable of mega-franchises such as “Star Wars” and the Marvel Cinematic Universe to outpace Netflix Inc.
    NFLX,
    +1.88%    ,
    Apple Inc.
    AAPL,
    +0.42%    ,
    Comcast Corp.
    CMCSA,
    +0.95%    ,
    Warner Bros. Discover Inc.
    WBD,
    -2.04%    ,
    Amazon.com Inc.
    AMZN,
    -0.61%    ,
    Paramount Global
    PARA,
    +1.28%
    and others.

    Read more: Disney overtook Netflix as the streaming leader, and is expected to widen its lead

    Disney’s television networks generated sales of $6.34 billion, while analysts’ average estimates called for $6.64 billion. Content sales and licensing, a category that includes Disney’s film business, registered revenue of $1.74 billion vs. analysts’ expectations of $2.08 billion.

    The company’s signature theme parks and product sales business increased to $7.43 billion in revenue from $5.45 billion a year ago. The average analyst estimate was $7.46 billion.

    Shares of Disney are down 35.5% this year, while the broader S&P 500 index
    SPX,
    +0.56%
    has dropped 20%.

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  • California ticket-holder is sole winner of the $2 billion Powerball jackpot

    California ticket-holder is sole winner of the $2 billion Powerball jackpot

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    A lucky California ticketholder has won the biggest prize in U.S. lottery history — a $2.04 billion Powerball jackpot.

    That’s the word from officials with the Multi-State Lottery Association, the organization behind Powerball. They announced the results on Tuesday, but not after several hours of drama and delays. 

    The drawing was originally scheduled for Monday at 10:59 p.m. EST, but was delayed by 10 hours because of what officials called a security-protocol issue. It took another few hours to reveal if anyone had won the jackpot. 

    The winner can opt for a lump-sum payment of $997.6 million — in essence, becoming a billionaire in an instant. Or they can opt for an annuity plan, spread over 30 payments. 

    The winning Powerball numbers were 10, 33, 41, 47 and 56, plus 10 for the red Powerball itself.

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  • $1.9 billion Powerball drawing is delayed because of security issue

    $1.9 billion Powerball drawing is delayed because of security issue

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    If you’re waiting to find out if you have a jackpot-winning Powerball ticket, you’re going to have to wait a little longer.

    Officials with the Multi-State Lottery Association, the organization behind the game, said that Monday’s drawing, with a record $1.9 billion jackpot, is delayed because of a security issue. The drawing was originally set for 10:59 p.m. EST.

    “Tonight’s Powerball drawing has been delayed due to a participating lottery needing extra time to complete the required security protocols. Powerball has strict security requirements that must be met by all 48 lotteries before a drawing can occur,” officials said in a statement. “When the required security protocols are complete, the drawing will be performed under the supervision of lottery security officials and independent auditors.”

    There are 45 states that participate in Powerball, plus Washington, D.C., the U.S. Virgin Islands and Puerto Rico.

    This isn’t the first time that there’s been a delay with Powerball results. On Oct. 19, there was an hour-long delay because of a similar issue.

    Officials said the winning numbers and recorded video of the drawing will eventually be posted to the Powerball website and YouTube channel. They didn’t provide details regarding when the drawing will finally take place.

    “We apologize for the delay,” officials added.

    As might be expected, Powerball players had plenty to say about the situation, given the fervor that had surrounded the drawing.

    “Lol we broke Powerball,” one person tweeted.

    Others thought there was something odd about the delay, given that it coincided with the blood-moon eclipse. To say nothing of the midterm elections.

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  • Starbucks says higher prices, customizable beverages will carry it through potential economic winter

    Starbucks says higher prices, customizable beverages will carry it through potential economic winter

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    Ever since Starbucks Corp. rolled out longer-term financial targets in September, Wall Street has wondered how the coffee chain might meet what analysts say were ambitious goals, as rising prices drain consumer spending. For at least the year ahead, executives on Thursday called out three ways to get there: higher prices, younger customers and cold, customizable beverages.

    For the fiscal year ahead, executives for the coffee chain on Thursday said they expected global same-store sales to be “near the high end” of its long-term target of between 7% to 9% growth. FactSet expects growth of 8.6%.

    When an analyst asked what gave management confidence in that target, interim Chief Executive Howard Schultz said that its coffee was an “affordable luxury,” and that it was armed with a loyalty program that it didn’t have in years past. And they said its customers were getting younger, not older.

    “Not only has it gotten younger, but that young, Gen Z customer tends to have significantly more discretionary money at their disposal,” he said. “And their loyalty to Starbucks has been quite significant and predicted.”

    He said Starbucks
    SBUX,
    +0.12%
    had raised prices by nearly 6% over the past 12 months and hadn’t seen demand subside. And he said cold coffee beverages made up 76% percent of total drink sales in its U.S. company-owned stores. In the fourth quarter, more than half of beverages overall in those stores were customized, leading to $1 billion in sales a year for add-on syrups, foams and other ingredients.

    “I think customization, which we spoke a lot about in our prepared remarks, is obviously giving us the ticket is becoming more accretive,” he said.

    Management said they expect U.S. same-store sales growth of 7% to 9% for the year ahead. For China, they’re banking on “outsize” growth for the metric — interrupted by a decrease in the first-quarter — as the nation potentially emerges from pandemic-related lockdowns.

    For overall revenue, they expect gains of between 10% and 12%. Management also said they would resume their buyback program in fiscal 2023.

    Even as the Federal Reserve tries to chart a path to lower prices, Starbucks is the latest company to say it still has “pricing power,” or the ability to charge customers more. Snack maker Mondelez International
    MDLZ,
    -0.93%    ,
    earlier in the week, said it planned to raise prices through next year. Similarly, its own chief executive also described its snacks as an “affordable indulgence.”

    Prior to the call, Starbucks reported fiscal fourth-quarter results that beat expectations, helped by a boost in U.S. sales and higher prices.

    The coffee chain reported net income of $878 million, or 76 cents a share, compared with $1.76 billion, or $1.49 a share, in the same quarter last year. Revenue rose 3% to $8.4 billion, compared with $8.15 billion in the prior-year quarter.

    Same-store sales rose 7% worldwide, helped largely by bigger ticket sizes, even as actual transaction volume remained muted. They were up 11% in the U.S. But international same-store sales fell 5%, with a 16% drop in China.

    Excluding restructuring, impairment and other costs, Starbucks earned 81 cents per share, compared with 99 cents a year earlier. U.S. members of its loyalty program who were active for three months rose 16% to 28.7 million.

    Analysts polled by FactSet expected Starbucks to report adjusted earnings per share of 72 cents, on revenue of $8.323 billion. Same-store sales were expected to rise 4.2%.

    Shares rose 2.4% after hours.

    As with other restaurants and retailers, Starbucks’ sales this year have been helped by price increases. Analysts have also said higher-income consumers, who might not mind higher prices as much, as well as demand for cold beverages, have propelled demand. While China’s COVID-19 restrictions have weighed on sales, analysts say demand trends are strong elsewhere.

    “The U.S. business is humming, and the China risk is increasingly understood,” Wedbush analyst Nick Setyan wrote in a research note ahead of Starbucks’ earnings.

    The earnings report comes as Starbucks battles a nascent unionization push at some of its stores. Some bargaining efforts between the company and the union members have stalled, amid allegations from both of bad-faith negotiations. The company over the past year has spent more to raise employee pay and rolled out other incentives at non-union stores.

    Starbucks stock has tumbled 27% so far this year. The S&P 500 Index
    SPX,
    -1.06%    ,
    by comparison, is down around 22%.

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  • New omicron subvariants accounted for more cases in New York region in latest week than BA.5, CDC data shows

    New omicron subvariants accounted for more cases in New York region in latest week than BA.5, CDC data shows

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    The omicron sublineages named BQ.1 and BQ.1.1 continued to spread in the U.S. in the week through Oct. 29, accounting for 27.1% of new cases nationwide, according to Centers for Disease Control and Prevention data.

    The two accounted for 42.5% of all cases in the New York region, which includes New Jersey, Puerto Rico and the Virgin Islands, up from 37% the previous week. That was more than the BA.5 omicron subvariant, which accounted for 35.7% of new cases in the New York area in the latest week.

    The BA.5 omicron subvariant accounted for 49.6% of all U.S. cases, the data show.

    BQ.1 and BQ.1.1 were included in BA.5 variant data as recently as three weeks ago, because their numbers were too small to break out. BQ.1 was first identified by researchers in early September and has been found in the U.K. and Germany, among other places.

    Last week, the World Health Organization said that BQ.1 and another sublineage dubbed XBB do not appear to have immune-escape mutations that warrant being designated as variants of concern. However, BA.5 is still a variant of concern that is being closely monitored, said a statement from the WHO’s Technical Advisory Group on SARS-CoV-2 Virus Evolution.

    Workers in a manufacturing facility that assemble Apple Inc.’s
    AAPL,
    -1.66%
    iPhone in the Chinese city of Zhengzhou appear to have left to avoid COVID-19 curbs, with many traveling on foot for days after an unknown number of employees were quarantined in the facility after a virus outbreak, the Associated Press reported. 

    Videos circulating on Chinese social media platforms showed people who are allegedly Foxconn workers climbing over fences and carrying their belongings down a road.

    Separately, visitors to Shanghai Disneyland were left stranded at the park on Monday after the resort halted operations to comply with COVID-19 restrictions amid a new outbreak of the virus.

    In the U.S., known cases of COVID are continuing to ease and now stand at their lowest level since mid-April, although the true tally is likely higher given how many people overall are testing at home, where data are not being collected.

    The daily average for new cases stood at 36,869 on Sunday, according to a New York Times tracker, down 2% from two weeks ago. The daily average for hospitalizations was up 3% to 27,415, while the daily average for deaths was down 6% to 352. 

    Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began

    Other COVID-19 news you should know about:

    • With a downcast earnings season passing the halfway mark, results from financial-technology companies and vaccine makers will arrive this week amid questions about consumer spending as well as demand for COVID drugs, MarketWatch’s Bill Peters reported. Pfizer Inc.
    PFE,
    -1.82%
    will report earnings on Tuesday, followed by Moderna Inc.
    MRNA,
    -0.47%
    on Thursday. Analysts will have their eye on the state of COVID-19 vaccine and treatment sales and on what executives are anticipating for the full year, as they prepare for a private market for COVID medications and as more people shrug off the pandemic. Pfizer executives, during a call last week, said they intended to charge between $110 and $130 for a single-dose vial of the vaccine for U.S. adults when government purchases end. But they said they believe anyone who has health insurance shouldn’t have to pay anything out of pocket.

    The FDA authorized newly modified COVID-19 boosters to target the latest versions of the omicron variant. But as WSJ’s Daniela Hernandez explains, a key part of the decision-making process was changed with these new shots. Photo: Laura Kammermann

    • A number of young children are being hospitalized because of respiratory syncytial virus, or RSV, and it’s happening at an unusual time of year and among older children than in years past, MarketWatch’s Jaimy Lee reported. COVID may be a contributing factor, in part because many children were not exposed to RSV last season and also because a prior COVID infection or exposure may change the way a baby’s immune system responds to RSV and may lead to more severe illness from an RSV infection, according to Asuncion Mejias, a principal investigator with the Center for Vaccines and Immunity at the Research Institute at Nationwide Children’s Hospital in Columbus, Ohio.

    • On Saturday, more than 3,000 people took part in the first Pride march in South Africa since the COVID pandemic , celebrating the LGBT community and defying a U.S. warning of a possible terror attack in the area, the AP reported. The U.S. government this week warned of a possible attack in the Sandton part of Johannesburg, where the march took place. The South African government expressed concern that the U.S. had not shared enough information to give credibility to the alleged threat. Police said all measures had been taken to ensure safety in the area.

    Here’s what the numbers say:

    The global tally of confirmed cases of COVID-19 topped 630.2 million on Monday, while the death toll rose above 6.58 million, according to data aggregated by Johns Hopkins University.

    The U.S. leads the world with 97.5 million cases and 1,070,266 fatalities.

    The Centers for Disease Control and Prevention’s tracker shows that 226.9 million people living in the U.S., equal to 68.4% of the total population, are fully vaccinated, meaning they have had their primary shots.

    So far, just 22.8 million Americans have had the updated COVID booster that targets the original virus and the omicron variants, equal to 7.3% of the overall population.

     

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  • As subscription prices rise, here’s what’s worth streaming in November 2022: ‘The Crown,’ ‘Willow,’ ‘Mythic Quest’ and more

    As subscription prices rise, here’s what’s worth streaming in November 2022: ‘The Crown,’ ‘Willow,’ ‘Mythic Quest’ and more

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    So here’s some bad news and some, well, slightly less bad news.

    First, the bad-bad: Streaming prices are increasing almost across the board (Hulu and Apple TV+ rose in October, Disney+ will rise in December, while Netflix and Prime Video rose earlier this year), putting even more of a crunch on budget-conscious consumers.

    But now the less bad: If you can put up with commercials, there are cheaper, ad-supported versions coming your way (Netflix on Nov. 3, Disney+ in December).

    Of course, the other money-saving solution is to double down on a churn-and-return strategy and cut down on recurring subscriptions even more.

    Each month, this column offers tips on how to maximize your streaming and your budget, rating the major services as a “play,” “pause” or “stop” — similar to investment analysts’ traditional ratings of buy, hold and sell. We also pick the best content to help you make your monthly decisions.

    Consumers can take full advantage of cord-cutting by churning and returning — adding and dropping streaming services each month. All it takes is good planning. Keep in mind that a billing cycle starts when you sign up, not necessarily at the beginning of the month, and keep an eye out for lower-priced tiers, limited-time discounts, free trials and cost-saving bundles. There are a lot of offers out there, but the deals don’t last forever.

    Here’s a look at what’s coming to the various streaming services in November 2022, and what’s really worth the monthly subscription fee.

    Netflix ($6.99 a month for basic with ads starting Nov. 3, $9.99 basic without ads, $15.49 standard without ads, $19.99 premium without ads)

    Netflix has another really good month coming up.

     “The Crown” (Nov. 9), returns for its fifth season, set this time in the 1990s as scandals involving Charles and Diana plaster London’s tabloids and the role of Britain’s monarchy in modern society is thrown into question. Imelda Staunton takes over the role of Queen Elizabeth, with Dominic West as Prince Charles, Elizabeth Debicki as Princess Diana and Jonathan Pryce as Prince Philip. Controversy has already erupted over the new season, which will include Diana’s tragic death, as some have spoken out about the show’s increasingly blurry line between truth and fiction. Pryce recently told Vanity Fair, ““The vast majority of people know it’s a drama,” not a documentary. And it’s a pretty good drama.

    Netflix
    NFLX,
    -0.41%
    hasn’t had much success developing original sitcoms, but is hoping to finally break through with “Blockbuster” (Nov. 3), a workplace comedy set at the last Blockbuster video store in America, starring network sitcom veterans Randall Park (“Fresh Off the Boat”) and Melissa Fumero (“Brooklyn Nine-Nine”). There’s also “Wednesday” (Nov. 23), a horror-comedy series from Tim Burton starring Jenna Ortega as the terrifyingly snarky teen Wednesday Addams, with Catherine Zeta-Jones and Luis Guzman playing her creepy and kooky parents, Morticia and Gomez; and the third and final season of the dark comedy “Dead to Me” (Nov. 17), starring Christina Applegate and Linda Cardellini, which returns after a two-and-a-half-year layoff.

    On the drama side, there’s “1899” (Nov. 17), a mystery-horror series set aboard a transatlantic steamer ship at the turn of the last century, from the makers of the mind-bending German sci-fi series “Dark” — and if it’s even half as trippy and addictive, it’ll be terrific; Part 1 of the fourth season of the supernatural drama “Manifest” (Nov. 4), which Netflix rescued from NBC’s cancellation; and Season 6 of the soapy Spanish high-school drama “Elite” (Nov 18).

    More: Here’s everything new coming to Netflix in November 2022, and what’s leaving

    There’s also the timely documentary “FIFA Uncovered” (Nov. 9), digging into the scandal-plagued organization behind the World Cup; “Pepsi, Where’s My Jet” (Nov. 17), a documentary about a man who sued Pepsi in the 1980s to get a free Harrier fighter jet; the fifth installment of “The Great British Baking Show: Holidays” (Nov. 18); and the new standup comedy special from the outgoing “Daily Show” host, “Trevor Noah: I Wish You Would” (Nov. 22).

    On the movie front, there’s “Enola Holmes 2” (Nov. 4), a sequel to the hit 2020 movie about Sherlock Holmes’ younger sister, played by Millie Bobby Brown (“Stranger Things”), as young detective Enola sets out to investigate her first case; “Slumberland” (Nov. 18), a comedy adventure about a young girl exploring the dreamworld, starring Mallow Barkley and Jason Mamoa; and Lindsay Lohan is back with a Christmas rom-com, “Falling for Christmas” (Nov. 10).

    Who’s Netflix for? Fans of buzz-worthy original shows and movies.

    Play, pause or stop? Play. When it’s at the top of its game, as it is again this month, Netflix is a must-have, at whatever price tier.

    Disney+ ($7.99 a month)

    The TV world has been abuzz about prequels for the past few months, but it’s all about sequels in November for Disney+.

    The biggest of the bunch is “Willow” (Nov. 30), a follow-up series to the cult-favorite 1988 fantasy movie of the same name. The magical adventure is set 20 years after the events of the film, and Warwick Davis returns as farmer-turned-sorcerer Willow Ufgood, who leads an unlikely group of heroes on a quest to save their world. It should be fun for the whole family.

    Disney
    DIS,
    +1.45%
    also has “Disenchanted” (Nov. 18), a sequel to the 2007 hit movie “Enchanted.” The musical fantasy is set 10 years after the happily-ever-after ending, with Giselle (Amy Adams) questioning her happiness and inadvertently setting her two worlds askew. Patrick Dempsey, James Marsden and Maya Rudolph co-star. And then there’s “The Santa Clauses” (Nov. 16), as Tim Allen reprises his role of Santa Claus, who’s now facing retirement and looking for a replacement, in a new miniseries spinoff of the family-movie trilogy.

    Also of note: “The Guardians of the Galaxy Holiday Special” (Nov. 25), as Star-Lord and the gang kidnap Kevin Bacon; the live performance “Elton John: Live from Dodger Stadium” (Nov. 20), the pop icon’s final show in North America; and weekly episodes of “Dancing With the Stars” (season finale Nov. 21), the “Star Wars” prequel “Andor” (season finale Nov. 23) and “The Mighty Ducks: Game Changers” (season finale Nov. 30).

    And heads up: Prices for the ad-free tier will jump to $10.99 a month in December, after Disney+ launches its ad-supported tier for $7.99 a month.

    Who’s Disney+ for? Families with kids, hardcore “Star Wars” and Marvel fans. For people not in those groups, Disney’s library can be lacking.

    Play, pause or stop? Play. There’s something for everyone in the household — even grumps who aren’t “Star Wars” fans can get into “Andor,” which absolutely works as a dark, gripping, spy thriller. Meanwhile, fans are realizing it just might be the best “Star Wars” series or movie ever made.

    HBO Max ($9.99 a month with ads, or $14.99 without ads)

    HBO Max is bringing back  “The Sex Lives of College Girls” (Nov. 17) for its second season. Created by Mindy Kaling and Justin Noble (who also teamed on Netflix’s “Never Have I Ever”), the ensemble comedy about four college roommates picks up right after Thanksgiving break, with the girls organizing a “sex-positive” male strip show. It’s sharp, funny, and less cringey than its title suggests.

    Then there’s “A Christmas Story Christmas” (Nov. 17), a nostalgic sequel to the 1983 classic, starring Peter Billingsley as a grown-up Ralphie who returns to his hometown to try to give his kids a perfect Christmas. It’s risky reviving such a beloved movie, and this could either be wonderful or terrible, there’s really no middle ground.

    HBO Max also has a slew of documentaries, including “Love, Lizzo” (Nov. 24), about the pop superstar’s inspiring life story; “Shaq” (Nov. 23), a four-part docuseries chronicling the rise to superstardom of NBA Hall of Famer Shaquille O’Neal; “Low Country: The Murdaugh Dynasty” (Nov. 3), a true-crime series about a South Carolina lawyer’s scandalous fall; and “Say Hey, Willie Mays!” (Nov. 8), a film exploring the life, career and social impact of the greatest baseball player who ever played the game.

    See more: Here’s everything new coming to HBO Max in November 2022, and what’s leaving

    And every week brings new episodes of Season 2 of the very dark vacation comedy “The White Lotus,” Season 3 of “Pennyworth: The Origin of Batman’s Butler” and Season 2 of the cult documentary “The Vow.”

    Who’s HBO Max for? HBO fans and movie lovers.

    Play, pause or stop? Pause and think it over. “The White Lotus” and “The Sex Lives of College Girls” are both worth watching, but beyond that it’s kinda “meh” this month. And Max is too pricey for “meh.”

    Amazon Prime Video ($14.99 a month)

    Amazon
    AMZN,
    -6.80%
    is bringing the star power in November, starting with the Western drama series “The English” (Nov. 11), starring Emily Blunt as an aristocratic Englishwoman who teams with a Pawnee scout (Chaske Spencer) on a mission to cross the violent 1890s American frontier. It looks stylish and bloody — and promising.

    Meanwhile, James Corden and Sally Hawkins star in “Mammals” (Nov. 11), a dark comedy series about modern marriage; pop star-turned-actor Harry Styles stars in “My Policeman” (Nov. 4), a drama about forbidden romance that’s getting very “meh” reviews in its theatrical release; and Kristen Bell, Ben Platt and Allison Janney star in “The People We Hate at the Wedding” (Nov. 18), a raunchy comedy set at a dysfunctional family wedding.

    More: Here’s what’s coming to Amazon’s Prime Video in November 2022

    There’s also NFL Thursday Night Football every week, and new episodes of the intriguing sci-fi drama “The Peripheral,” which is giving very “Westworld”-but-slightly-less-confusing vibes.

    Who’s Amazon Prime Video for? Movie lovers, TV-series fans who value quality over quantity.

    Play, pause or stop? Pause. There’s good stuff here, but nothing that feels must-see.

    Paramount+ ($4.99 a month with ads but not live CBS, $9.99 without ads)

    Taylor Sheridan (“Yellowstone,” “1883,” “Mayor of Kingstown”) has another new series: “Tulsa King” (Nov. 13), starring Sylvester Stallone as a former New York mafia capo who gets freed from prison after 25 years and settles in Tulsa, Okla., to build a criminal empire of his own. Showrunner Terence Winter (“The Sopranos,” “Boardwalk Empire”) knows a thing or two about mob shows, and this one could be good.

    Paramount+ also has the spinoff series “Criminal Minds: Evolution” (Nov. 24), about an elite team of FBI profilers unraveling a network of serial killers; the family movie “Fantasy Football” (Nov. 25), about a girl who can magically control how her NFL-player dad performs on the field; and the series finale of “The Good Fight” (Nov. 10), which its creators promise will be “cataclysmic.”

    There’s also the Thanksgiving Day Parade (Nov. 24) and a ton of live sports, including college football on Saturdays, NFL football on Sundays (and Thanksgiving Day), and group-stage matches for UEFA’s Champions and Europe leagues.

    Who’s Paramount+ for? Gen X cord-cutters who miss live sports and familiar Paramount Global 
    PARA,
    +3.37%
     broadcast and cable shows.

    Play, pause or stop? Pause. Besides its solid live-sports lineup, it’s a good time to catch up and binge “The Good Fight,” and “Tulsa King” could be worth a watch too.

    Hulu ($7.99 a month with ads, or $14.99 with no ads)

    Hulu has a couple of interesting offerings in November, but nothing that screams must-see. Yet, at least.

    FX’s “Fleishman Is in Trouble” (Nov. 17) stars Jesse Eisenberg as a newly divorced dad whose promiscuous dive into app-based dating is disrupted when his ex-wife disappears and leaves him with their kids. Claire Danes, Lizzy Caplan and Adam Brody co-star in the eight-episode drama, which is based on Taffy Brodesser-Akner’s best-selling novel.

    There’s also “Welcome to Chippendales” (Nov. 22), a true-crime series starring Kumail Nanjiani as the immigrant founder of the 1980s male-stripper franchise, which chronicles his business empire’s rise and fall amid a blizzard of sex, drugs and violence.

    Meanwhile, Adam McKay (“The Big Short”) and Billy Corben (“Cocaine Cowboys”) have the documentary  “God Forbid: The Sex Scandal That Brought Down a Dynasty” (Nov. 1), about the private life of Christian televangelist and former Liberty University president Jerry Falwell Jr. and his very public downfall.

    See: Here’s everything new on Hulu in November 2022 — and what’s leaving

    There are also the final two episodes of “Atlanta” (series finale Nov. 10), whose fourth season has returned to brilliance after an underwhelming Season 3 over the summer, and new episodes every week of ABC’s “Abbott Elementary.”

    Who’s Hulu for? TV lovers. There’s a deep library for those who want older TV series and next-day streaming of many current network and cable shows.

    Play, pause or stop? Stop. While you won’t regret paying for Hulu if you already do, there’s not a lot to lure new subscribers this month.

    Apple TV+ ($6.99 a month)

    Apple TV+ is too inconsistent to be worth the $2-a-month price hike that was just announced, so it’s best to strategically plan when to stream — wait until a good series or two are completed, for example, and binge them all in a month, then cancel. Repeat as needed.

    And it actually is a decent month for Apple. Its second-best comedy, “Mythic Quest” Nov. 11), returns for its third season, with Ian (Rob McElhenny) and Poppy (Charlotte Nicdao) gearing up for war against their old videogame company. With a perfect blend of humor and heart, it’s one of the best workplace comedies on TV.

    Meanwhile, Season 2 of “The Mosquito Coast” (Nov. 4) finds the fugitive Fox family finally hiding out in Central America, after a tedious premise-pilot of a first season that wasted good actors (Justin Theroux and Melissa George) and beautiful cinematography with nonsensical plot twists, while the action series “Echo 3” (Nov. 23) stars Luke Evans and Michiel Huisman as former soldiers trying to rescue a kidnapped scientist in the jungles of South America.

    Apple
    AAPL,
    +7.56%
    also has a pair of high-profile original movies: “Causeway” (Nov. 3), starring Jennifer Lawrence as a former soldier struggling to adjust to civilian life in New Orleans, co-starring Brian Tyree Henry, and “Spirited” (Nov. 18), a musical twist on “A Christmas Carol” told from the ghosts’ point of view, starring Ryan Reynolds and Will Ferrell.

    Who’s Apple TV+ for? It offers a little something for everyone, but not necessarily enough for anyone — although it’s getting there.

    Play, pause or stop? Stop. There’s just not enough to justify a month-to-month subscription. December is a better bet, with “Mythic Quest” and a new season of “Slow Horses” running concurrently.

    Peacock (free basic level, Premium for $4.99 a month with ads, or $9.99 a month with no ads)

    The World Cup from Qatar (Nov. 20-Dec. 18) will be broadcast on Fox and FS1, so cord-cutters are out of luck, unless you subscribe to a live-streaming service like Hulu Live or YouTube TV. However, Peacock will stream every match in Spanish, which could be a decent Plan B for soccer fans.

    And that “it’ll-do-but-it’s-not-exactly-what-I’m-looking-for” description is the running theme for Peacock. November will bring a handful of originals that are unlikely to move the needle, subscriber-wise: There’s the musical-comedy spinoff series “Pitch Perfect: Bumper in Berlin” (Nov. 23), starring Adam Devine; “The Calling” (Nov. 10), a crime drama about a religious cop, from David E. Kelley and Barry Levinson; the Macy’s Thanksgiving Day Parade (Nov. 24); and the streaming debut of Jordan Poole’s sci-fi/horror hit “Nope” (Nov. 18).

    Sports-wise, Peacock has the National Dog Show (hey, it’s a competition!) on Nov. 24, NFL Sunday Night Football every weekend, a full slate of English Premier League matches through Nov. 13, and a ton of golf and winter sports.

    Who’s Peacock for? If you have a Comcast 
    CMCSA,
    -0.06%
     or Cox cable subscription, you likely have free access to the Premium tier (with ads) — though reportedly not for much longer. The free tier is almost worthless, but the recent addition of next-day streaming of NBC and Bravo shows (like “Saturday Night Live” and “Real Housewives”) bolsters the case for paying for a subscription. Still, Peacock is still not really necessary unless you need it for sports.

    Play, pause or stop? Stop. There’s not a lot that’s particularly enticing right now, even on the sports side.

    Discovery+ ($4.99 a month with ads, or $6.99 with no ads)

    More of the same in November for Discovery+, which is a feature, not a bug. Highlights include the vegan cook-and-chat show “Mary McCartney Serves It Up” (Nov. 1); “Tut’s Lost City Revealed” (Nov. 3), about a 3,000-year-old Egyptian city recently discovered by archaeologists; “Vardy vs Rooney: The Wagatha Trial” (Nov. 19), the inside story of the tabloid-fodder “Wagatha” scandal between the wives of English soccer stars; and Season 2 of the excellent CNN food series “Stanley Tucci: Searching for Italy” (Nov. 30). Full disclosure: There are also a handful of sappy holiday movies guest-starring some HGTV and Food Network stars, but they look terrible and I expect better from you, a discerning reader/viewer.

    Who’s Discovery+ for? Cord-cutters who miss their unscripted TV or who are really, really into “90 Day Fiancé.”

    Play, pause or stop?  Stop. Discovery+ is still fantastic for background TV, but it’s not worth the cost. Still, it should add value when the reconfigured Warner Bros. Discovery 
    WBD,
    +3.68%
      combines it with HBO Max next summer.

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  • ‘He’s not willing to live in my house because it has fewer amenities’: My boyfriend wants me to move in and pay half his monthly costs. Is that fair?

    ‘He’s not willing to live in my house because it has fewer amenities’: My boyfriend wants me to move in and pay half his monthly costs. Is that fair?

    [ad_1]

    Dear Quentin,

    My boyfriend owns a house with a 30-year mortgage balance of $150,000 on a 4% interest rate. He has $275,000 in cash and retirement accounts. He is retired.

    My house is paid off. I have $50,000 in cash and retirement accounts. I would like to retire within one to two years.

    We wish to cohabitate but have not been able to agree on a fair “rent” to pay. He is not willing to live in my house because it has fewer amenities. 

    “‘He believes I should pay half of his monthly cost at his nicer, more expensive house. He could pay off his mortgage and save $600 a month, but he likes to have cash. ‘”

    He believes I should pay half of his monthly cost at his nicer, more expensive house. He could pay off his mortgage and save $600 a month, but he likes to have cash. 

    I have forgone that luxury and paid off my mortgage. I am now working on building my savings. I don’t feel it is fair for me to pay half of the mortgage interest expense. 

    I don’t know what repair and maintenance costs should be expected from me, if I have no equity in his house. There are many points of view, none of which feels fair.

    These are the options he set forth:

    · I live in his house and thus get to rent mine out. Pay him half of what I net from that rental.

    · Pay half of the actual costs of living expenses and upkeep on his house while I live there.

    · Pay him what I pay to live in my current home for taxes, insurance, and utilities: $800/month.

    What say you, Moneyist?

    House Owner & Girlfriend 

    Dear House Owner,

    I’m sure your house is just as nice. And just because he believes you should pay half his costs, does not make it so. If you are paying no mortgage on your own home, I don’t believe you should pay one red cent more to live in his home. 

    That is to say, you should not come out of this arrangement paying more, just because (a) he would like you to live in his home and (b) he would like you to help him pay off his mortgage, or his tax and maintenance.

    You both made different choices: Yours was to have a home that’s free-and-clear of a mortgage, so you can spend this time building up your savings for retirement and/or a rainy day. 

    You have worked hard to pay off your mortgage, and you have $50,000 in savings, less than 20% of your boyfriend’s savings. He has $150,000 left on his mortgage, and that’s his choice.

    “If his aim is to find help to pay off half of his mortgage, he can find a tenant to do that for him. ”

    You are not the answer to his long-term financial plans, you are his partner in life. If his aim is to find help to pay off half of his mortgage, he can find a tenant to do that for him. What do you expect of you? Forget what he expects.

    By the way he is approaching this arrangement, it seems like he wants the equivalent of a detergent and a fabric softener — a girlfriend and a tenant in one handy bottle to keep his financial plans smooth and clean.

    Bottom line: You should not compromise any plans to build your nest egg. The lady’s not for turning. Only acquiesce to his plan if — with the help of an actual tenant in your home — it helps you too. 

    In other words, the desired outcome for you is more important than the suggestions he has put forward. He could save $600 a month! That’s his business. Not yours. What do you want to have in your pocket every month?

    Figure out what you want, and then work your way backwards based on that goal. For instance, if you can pay him $800 a month, charge $1,600 rent for your home, and put $800 towards your savings, do that.

    You’ve come a long way. Don’t let these negotiations scupper that.

    Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

    The Moneyist regrets he cannot reply to questions individually.

    By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

    Also read:

    I built a property portfolio with 23 units while we were dating. How much should I give to my fiancé in our prenup?

    ‘We will not outlive our money’: How can we give $10,000 to our nieces and nephews without offending the rest of the family?

    ‘S‘I hate to be cheap’: Is it still acceptable to arrive at a friend’s house for dinner with just one bottle of wine?

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  • McDonald’s ‘adult Happy Meal’ toys are selling for up to $300,000 on eBay

    McDonald’s ‘adult Happy Meal’ toys are selling for up to $300,000 on eBay

    [ad_1]

    When it comes to nostalgia, McDonald’s customers sure are lovin’ it. 

    The burger chain brought back its Halloween pails on Tuesday, which haven’t been offered in the U.S. since 2016. The plastic trick-or-treat buckets decorated to look like a ghost, a goblin or a jack-o’-lantern (aka McBoo, McGoblin and McPunk’n, respectively) quickly began trending among real-time Google searches on Tuesday. 

    But the appetite for these Halloween buckets is nothing compared to the recent McDonald’s
    MCD,
    +1.10%
    collaboration with streetwear company Cactus Plant Flea Market, which dished out a $12-$13 box (better known as the “adult Happy Meal”) that featured a food combo and a collectible figurine targeted toward the grownups who grew up on Happy Meals.

    They sold out quickly, and now some enterprising fast food lovers are hawking the adult Happy Meal toys over online resale sites for thousands of dollars.

    So what’s the appeal? Nostalgia, nostalgia, nostalgia. “Everyone remembers their first Happy Meal as a kid … and the can’t-sit-still feeling as you dug in to see what was inside,” McDonald’s wrote in a press release. “And now, we’re reimagining that experience in a whole new way — this time, for adults.”

    The limited-edition Cactus Plant Flea Market Box at McDonald’s rolled out on Oct. 3, feeding the inner child of the average customer by offering a choice of a Big Mac or 10-piece chicken nuggets main dish, french fries and a soft drink, as well as one of four “toys” featuring redesigned McDonald’s mascots like the Grimace, the Hamburgler and Birdie, as well as a new “Cactus Buddy!” figure (yes, the exclamation point is part of his name.)

    The Cactus Plant Flea Market boxes sold out in many places on the same day that they came out. Some McDonald’s employees took to Reddit and TikTok to share how much they were not lovin’ it — which was reminiscent of the hatred many Starbucks
    SBUX,
    +0.07%
    employees felt toward the viral unicorn frappuccino in 2017. 

    And now, both the toys and the boxes have become near impossible to come by — unless you’re willing to cough up a lot of cash. A medium Cactus Plant Flea Market Box costs about $12, with large box closer to $13 — and one New Jersey mom noted that in her area, a Big Mac combo with fries and a drink runs under $10, so she spent $3 basically get the collectible toy.

    But one eBay listing offering three of the collectible Cactus Plant Flea Market, still unwrapped and in their original packaging, is asking for a whopping $300,000.

    The sold-out Cactus Plant Flea Market Boxes, aka McDonald’s “adult Happy Meals,” are popping up on resale sites for thousands of dollars.


    Screenshot

    Another listing on the fashion marketplace Grailed, which is marked as an “authenticated” post, features the “Cactus Buddy!” figure for the asking price of $39,999 (10% off of the original $44,444 price tag.) 

    The sold-out Cactus Plant Flea Market Boxes, aka McDonald’s “adult Happy Meals,” are popping up on resale sites for thousands of dollars.


    Screenshot

    But there are dozens of other listings for the individual toys and boxes on resale sites such as eBay and Facebook Marketplace in the much more palatable $10-$30 range, or bundles with all four collectible figurines running between $60-$70. 

    McDonald’s was not immediately available for comment, but a rep told Axios that, “The hype for the Cactus Plant Flea Market Box was so real that some of our restaurants have sold out of the limited-edition experience.” They added that, “We’re thrilled by the excitement we’re seeing.”

    The official McDonald’s Twitter account has also been fielding queries from disappointed potential customers who haven’t been able to get their hands on any of the adult Happy Meals, apologizing that this was only a limited time offer. 

    Time will tell if more “adult Happy Meals” will be offered in the future. There’s clearly a customer base hungry for more. 

    This isn’t McDonald’s first viral sensation, of course. The fast food giant has also scored success with celebrity collaborations featuring K-Pop sensation BTS, or singing diva Mariah Carey — which also reportedly sold out.

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  • A Tesla stock plunge could destroy ‘zombie stocks’ such as GameStop and Peloton, warns equity research firm New Constructs

    A Tesla stock plunge could destroy ‘zombie stocks’ such as GameStop and Peloton, warns equity research firm New Constructs

    [ad_1]

    Tesla shares could decline dramatically — and that could mean disaster for a number of stocks that have already seen deep share-price cuts, according to equity research firm New Constructs.

    The research firm, which uses machine learning and natural language processing to parse corporate filings and model economic earnings, called the stocks in danger “zombie stocks,” and defined them as companies with poor business models that are burning cash at an alarming rate and are at risk of seeing their stock decline to $0 per share.

    The research firm estimates there could be some 300 zombie companies across the marketplace.

    “The Federal Reserve’s aggressive rate hikes so far in 2022 have ended the era of free money and exposed a worrisome dynamic throughout capital markets: zombie stocks,” wrote New Constructs CEO David Trainer, in a note.

    See Now: Tesla earnings are coming, but do record deliveries mask a demand problem?

    New Constructs does not define Tesla Inc.
    TSLA,
    +7.01%
    as a “zombie stock,” citing CEO Elon Musk’s ability to raise capital, but does see the electric car manufacturer as a bellwether for the sector. “It shares many of the common characteristics of a zombie stock, such as an outrageous valuation and high cash burn,” wrote Trainer. “We believe Tesla’s unrelenting share price rise over the past three years – where investors completely ignored company fundamentals – inspired the birth of many of today’s zombie stocks.” 

    Tesla reports its third-quarter results after the closing bell on Oct. 19.

    The company’s stock was trading around $220 on Monday, an increase of over 1,000% compared to three years ago. But Trainer feels that Tesla is at risk of falling more than 80% to $25 a share.

    Tesla’s Optimus bot: ‘High school science project’ or robotics game changer?

    Tesla’s stock has fallen 37.6% in 2022, outpacing the S&P 500 Index’s
    SPX,
    +2.65%
    decline of 22.7%.

    “Its valuation remains nosebleed high because the cash flow expectations baked into the stock price are unreasonably optimistic,” Trainer wrote. “Our message to investors is to take profits in Tesla and avoid zombie stocks at all costs.”

    New Constructs recently added cloud-based communication company RingCentral Inc.
    RNG,
    +6.49%
    to its list of “zombie” stocks. Other companies on the list are Freshpet Inc.
    FRPT,
    -2.03%    ,
     Peloton Interactive Inc.
    PTON,
    +7.04%    ,
     Carvana Co.
    CVNA,
    +6.30%    ,
     Snap Inc.
    SNAP,
    +6.01%    ,
     Beyond Meat Inc.
    BYND,
    +0.64%    ,
     Rivian Automotive Inc.
    RIVN,
    +6.93%    ,
     DoorDash Inc.
    DASH,
    +6.15%    ,
     Shake Shack Inc.
    SHAK,
    +4.01%    ,
     Chewy Inc.
    CHWY,
    +10.76%    ,
     Uber Technologies Inc.
    UBER,
    +4.98%    ,
     Robinhood Markets Inc.
    HOOD,
    +3.24%    ,
     Tilray Brands Inc.
    TLRY,
    +7.32%    ,
     Affirm Holdings Inc.
    AFRM,
    +6.72%    ,
     SunRun Inc.
    RUN,
    +1.70%    ,
     Blue Apron Holdings Inc.
    APRN,
    +3.26%    ,
     and meme stocks AMC Entertainment Holdings Inc. 
    AMC,
    +6.00%
    and GameStop Corp.
    GME,
    +5.40%    .

    See Now: RingCentral added to ‘zombie’ stocks list by equity research firm New Constructs

    “Investors are now fed up with these kinds of companies, especially amid this year’s stock market volatility,” wrote New Constructs’ Trainer. “If investors start to give up on Tesla and take profits on the stock, which is up over 1,000% over the past three years, that spells terrible news for all of the other zombie stocks that don’t have the cash-raising luxury that Tesla has.”  

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  • U.S. stocks edge up despite higher-than-expected inflation data

    U.S. stocks edge up despite higher-than-expected inflation data

    [ad_1]

    U.S. stock indexes edged higher on Wednesday, while hotter-than-expected producer price inflation data deepened concerns that the Federal Reserve may continue its aggressive interest rate hikes.

    How are stock-index futures trading
    • The Dow Jones Industrial Average 
      DJIA,
      +0.50%
       was up 120 points, or 0.4% to around 29,355

    • The S&P 500 
      SPX,
      +0.35%
      gained 5.3 points, or 0.2% to about 3,594

    • The Nasdaq Composite
      COMP,
      -6.31%
      traded 5.1 points, or 0.1% higher to 10,430

    On Tuesday, the Dow Jones Industrial Average rose 36 points, or 0.12%, to 29239, the S&P 500 declined 24 points, or 0.65%, to 3589, and the Nasdaq Composite dropped 116 points, or 1.1%, to 10426. The S&P 500 closed down 1,177 points, or 24.7% for the year to date.

    What’s driving markets

    The 12-month rate of producer price inflation slowed to to 8.5% from 8.7% while the annual core rate, excluding food and energy, was unchanged at 5.6%, but the monthly rate rose 0.4% in September, above forecast, and the monthly core PPI was also up 0.4% in September.

    Such data has worsened fears that to curb inflation, the Fed will continue its aggressive rate hikes, which may steer the U.S. economy into a recession.

    “We believe the odds of a recession in 2023 are now better than 50%,” Greg Bassuk, chief executive at AXS Investments, wrote in a Wednesday note. “Last week’s market turbulence saw volatility at levels we have not seen since July, and we believe investors should brace for ongoing market volatility and uncertainty throughout Q4, in concert with another likely Fed interest rate hike to the tune of 0.75% in November,” according to Bassuk.

    The 10-year Treasury yield BX:TMUBMUSD10Y, which started the year around 1.65% was trading at 3.931% on Wednesday, off 1.3 basis points, after the producer price inflation data.

    Traders are also awaiting U.S. September consumer prices data on Thursday due at 8:30 am Eastern Time.

    “Inflation has proven to be difficult to forecast and given the negative ‘shock’ from the August CPI, it would be difficult for any investor to have conviction going into this report,” according to Tom Lee, head of research at Fundstrat.

    “For us, analyzing the month over month numbers is much more important than looking at the headline,” Zachary Hill, head of portfolio management at Horizon Investments, said in an interview.

    “The way we’ve been thinking about it, the last three months annualized [inflation] gives you a kind of a decent idea of where the shorter term trends are around inflation,” Hill said. “We think that’s what the Fed is going to be looking at to see progress towards their 2% goal. And unfortunately, based on various measures, we’re nowhere near that today.”

    Adding to the market anxiety, and keeping any Wednesday rally in check, is the continuing volatility in U.K. government bonds after the Bank of England reiterated it would stop supporting the market after Friday.

    Investors have become increasingly concerned of late that severe stresses in the financial system may emerge as central banks switch from the era of zero or negative interest rates to sharply higher borrowing costs as they try to tackle inflation at multi-decade highs.

    “[G]lobal financial conditions have tightened as central banks continue to raise interest rates. Our latest Global Financial Stability Report shows that financial stability risks have increased since our last report, with the balance of risks tilted to the downside,” said the International Monetary Fund in a report released on Tuesday.

    “The mood of global investors was gloomy enough and hardly needed yesterday’s reminder from the IMF that the risks to financial stability have increased,” Ian Williams, strategist at Peel Hunt, noted. “Its report highlighted specifically (if obviously) the threats from persistent inflation, China’s slowdown and the war in Ukraine. The highlighted ‘disorderly repricing of risk’ is arguably already underway.”

    The Fed may offer its view on the topic as a number of officials are due to give comments on Wednesday. Minneapolis Fed President Neel Kashkari said the Fed is “dead serious” about getting inflation down. Fed vice chair Michael Barr will speak at 1:45 p.m. The minutes of the Fed’s previous monetary policy setting meeting will be released at 2 p.m. ET and Fed governor Michelle Bowman will deliver comments at 6.30 pm.

    Companies in focus
    • Shares of Philips
      PHIA,
      -12.27%

      PHG,
      -11.33%
      plunged 12% after the Dutch tech company issued its second profit warning this year, forewarning that supply chain problems will impact sales and third-quarter profits.

    • Intel Corp.
      INTC,
      +1.50%
      may fire thousands of workers by the end of the month, around the same time the chip manufacturer reports quarterly results amid a tough year for semiconductor makers, Bloomberg reported late Tuesday. The company’s shares rose 1% Wednesday.

    • Shares of PepsiCo Inc. climbed 4.6% Wednesday, after the beverage and snack giant reported third-quarter profit and revenue that rose above expectations and raised its full-year outlook, as higher prices helped offset some volume weakness.

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  • Philips warns of 5% fall in like-for-like sales due to supply-chain woes

    Philips warns of 5% fall in like-for-like sales due to supply-chain woes

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    Royal Philips NV said Wednesday that its performance for the third quarter was hurt by stronger-than-anticipated supply-chain challenges, and adopted a more pessimistic view on its sales through the end of the year.

    The Dutch health-technology company
    PHIA,
    -8.01%

    PHG,
    -0.80%
    said that it expects to record a 1.3 billion euro ($1.26 billion) impairment charge in the period. The company said that this is an impairment of goodwill of Philips Respironics, its sleep and respiratory care business, and that it is due to revisions to the business’s financial forecast.

    This compares with adjusted Ebita of EUR512 million, or 12.3% of sales, a year earlier.

    Analysts had seen the metric at EUR336 million, according to a consensus estimate provided by the company.

    Philips expects to book a EUR1.3 billion impairment charge on its sleep and respiratory care business after revising its financial forecast for the unit, it said.

    Group comparable sales for the quarter fell around 5%.

    For the last quarter of the year, Philips now expects a mid-single-digit decline in comparable sales, it said.

    In late July, Philips had guided for 6%-9% growth in comparable sales over the second half of the year.

    “Philips still expects a better second half of the year, compared to the first half of 2022. However, the company sees prolonged supply chain disruptions and a worsening macro-environment,” it said.

    The company said it expects adjusted Ebita margin to be in the range of a high single to double digit for the last quarter of the year.

    Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com and Cristina Roca at cristina.roca@wsj.com

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  • WSJ News Exclusive | Peloton Co-Founder John Foley Faced Repeated Margin Calls From Goldman Sachs as Stock Slumped

    WSJ News Exclusive | Peloton Co-Founder John Foley Faced Repeated Margin Calls From Goldman Sachs as Stock Slumped

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    John Foley, the co-founder and former chief executive of Peloton Interactive faced repeated margin calls on money he borrowed against his Peloton holdings before he left the fitness company’s board last month, according to people familiar with the situation.

    As Peloton’s shares slumped over the past year, Goldman Sachs Group asked Mr. Foley several times to provide fresh funds or additional collateral for personal loans the bank had extended to him, the people said. The company’s share price has fallen nearly 95% from its $160 peak in December 2020.

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  • Yankees star Aaron Judge slams home run No. 62, breaking Roger Maris’ 61-year-old A.L. record

    Yankees star Aaron Judge slams home run No. 62, breaking Roger Maris’ 61-year-old A.L. record

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    ARLINGTON, Texas — Aaron Judge hit his 62nd home run of the season Tuesday night, breaking Roger Maris’ American League record and setting what some fans consider baseball’s “clean” standard.

    The 30-year-old Yankees slugger drove a 1-1 slider from Texas right-hander Jesús Tinoco into the first row of seats in left field when leading off the second game of New York’s day-night doubleheader.

    After No. 99 took a smooth, mighty swing, he had a wide smile on his face as he rounded the bases and his Yankees teammates streamed out of the dugout to celebrate with him. They stayed away from home plate, letting Judge step on it before sharing hugs and high-fives.

    Judge’s mother and father were in the stands to see Judge end a five-game homerless streak, including Game 1 of the doubleheader when he was 1 for 5 with a single.

    The ball was caught by a fan in Section 31, who was then taken with security to have the ball authenticated.

    Another fan was escorted away after leaping out of the seats into a gap between the seats and the left-field wall.

    Maris’ 61 for the Yankees in 1961 had been exceeded six times previously, but all were tainted by the stench of steroids. Mark McGwire hit 70 for the St. Louis Cardinals in 1998 and 65 the following year. Barry Bonds hit an MLB-record 73 for the San Francisco Giants in 2001, and the Chicago Cubs’ Sammy Sosa had 66, 65 and 63 during a four-season span starting in 1998.

    McGwire admitted using banned steroids, while Bonds and Sosa denied knowingly using performing-enhancing drugs. Major League Baseball started testing with penalties for PEDs in 2004, and some fans — perhaps many — until now have considered Maris as holder of the legitimate record.

    Also see: Aaron Judge hits 62nd homer, but can he save Major League Baseball from itself?

    A Ruthian figure with a smile as outsized as his body, the 6-foot-7 Judge has rocked the major leagues with a series of deep drives that hearken to the sepia tone movie reels of his legendary pinstriped predecessors.

    “He should be revered for being the actual single-season home run champ,” Roger Maris Jr. said Wednesday night after his father’s mark was matched by Judge. “I think baseball needs to look at the records and I think baseball should do something.”

    Judge had homered only once in the past 13 games, and that was when he hit No. 61 last Wednesday in Toronto. The doubleheader nightcap in Texas was his 55th game in row played since Aug. 5.

    Previously: Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

    Judge was 3 for 17 with five walks and a hit by pitch since moving past the 60 home runs Babe Ruth hit in 1927, which had stood as the major league record for 34 years. Maris hit his 61st off Boston’s Tracy Stallard at old Yankee Stadium on Oct. 1, 1961.

    Judge has a chance to become the first AL Triple Crown winner since Detroit’s Miguel Cabrera in 2012. He leads the AL with 131 RBIs and began the day trailing Minnesota’s Luis Arraez, who was hitting .315.

    The home run in his first at-bat put him back to .311, where he had started the day before dropping a point in the opener.

    Judge’s accomplishment will cause endless debate.

    “To me, the holder of the record for home runs in a season is Roger Maris,” author George Will said earlier this month. “There’s no hint of suspicion that we’re seeing better baseball than better chemistry in the case of Judge. He’s clean. He’s not doing something that forces other players to jeopardize their health.”

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  • For Long-Term Investors, It’s Time to Buy Tech Again. Here Are 20 Stocks to Look at First.

    For Long-Term Investors, It’s Time to Buy Tech Again. Here Are 20 Stocks to Look at First.

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    One cruel truth the stock market confirmed this past week is that trying to pick the bottom for technology stocks is a fool’s errand. The Nasdaq Composite’s terrible September—it was down 10.5% on the month—has made the bottom-fishing that took place over the summer look ill-advised. As I’ve noted before, the first downturn in tech earlier this year was all about valuations. This new phase of the decline is all about softening earnings. When it comes to price-to-earnings ratios, the market is running into a denominator problem.

    The market downturn, the weaker economy, and the reversal of some pandemic-era trends have exposed weaknesses in the business models of companies such as


    Peloton Interactive


    (ticker: PTON),


    Zoom Video Communications


    (ZM),


    Shopify


    (SHOP),


    Affirm Holdings


    (AFRM), and


    Snap


    (SNAP), and investors have adjusted valuations accordingly. But there are still some powerful underlying secular trends that should eventually drive tech stocks higher. Investors with long time horizons and strong stomachs might consider inching into the market. I have a few ideas on where to look.

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  • Trevor Noah leaving ‘The Daily Show’ after 7 years

    Trevor Noah leaving ‘The Daily Show’ after 7 years

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    Trevor Noah is leaving Comedy Central’s “The Daily Show” after seven years.

    The South African comedian made the announcement at the end of the taping of Thursday’s show, after thanking the audience for their support. “It’s been absolutely amazing. After seven years, my time is up,” he said. “But in the most beautiful way.”

    “Honestly, I’ve loved hosting the show. It’s been one of my greatest challenges. It’s been one of my greatest joys,” he added. ” I have loved trying to figure out how to make people laugh, even when the stories are particularly shitty on the worst days.”

    Noah took over hosting the satirical news show from Jon Stewart in 2015.

    He hosted the show from his apartment for more than a year due to the COVID-19 pandemic, before returning to the studio last year. During Noah’s tenure, “The Daily Show” shifted its focus, from snarky mocking of conservatives under Stewart to a more youth-focused, social-advocacy messages (though conservatives were still regularly mocked).

    Noah did not give a departure date, and said he will continue hosting the show for the “time being.”

    “We are grateful to Trevor for our amazing partnership over the past seven years,” Paramount Global’s
    PARA,
    -4.44%
    Comedy Central said in a statement Thursday night. “With no timetable for his departure, we’re working together on next steps. As we look ahead, we’re excited for the next chapter in the 25+ year history of The Daily Show as it continues to redefine culture through sharp and hilarious social commentary, helping audiences make sense of the world around them.”

    “The Daily Show” has been Emmy-nominated for “outstanding variety talk series” every year Noah has hosted, but has never won, losing to former “Daily Show” cast member John Oliver’s “Last Week Tonight” on HBO each year, though it did win an Emmy for “best short-form variety show” in 2018.

    Noah’s departure is the latest shakeup in the late-night TV scene. Warner Bros. Discovery’s
    WBD,
    -1.10%
    TBS recently canceled Samantha Bee’s “Full Frontal” after seven seasons. Showtime’s “Desus & Mero” recently split up, and James Corden has announced he’s leaving CBS’s “The Late Late Show” in 2023.

    Last week, Disney’s
    DIS,
    -1.96%
    ABC renewed “Jimmy Kimmel Live” for three more years.

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  • Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

    Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

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    Shares of Nike Inc. plunged as much as 10% after hours Thursday, after the athletic-gear giant’s executives said price-cutting efforts to flush off-season clothing from warehouses in North America would dent gross margins for the rest of its fiscal year and warned of a big potential hit from the stronger dollar.

    Management also said they expected their rivals to keep cutting prices through at least the end of the calendar year, as they try to clear their own stockpiles. But the Nike executives said inventory levels in North America likely “peaked” in its first quarter, which ended on Aug. 31, and expected levels to even out — with newer, seasonally-aligned, in-demand product — in the months ahead as it prepares for the holiday rush.

    “We’re taking decisive action to clear excess inventory, focusing on specific pockets of seasonally late product, predominantly in apparel,” Chief Financial Officer Matthew Friend said on Nike’s earnings call.

    He added that he expected the moves to have a “transitory impact” on gross margins for the year.

    The lopsided inventory levels, which grew 44% during Nike’s third quarter, followed factory closures last year in Asia, where most of its footwear is made, that led to late product deliveries, Friend said.

    But those late deliveries are now getting mixed in with holiday-season deliveries that are set to arrive earlier than planned. The earlier arrivals, executives said, were a function of earlier ordering — due to the shipping delays that have characterized the past year —and then a sudden, more recent improvement in those shipping times.

    And as the U.S. dollar strengthens, Friend said he expected the full-year negative impact of foreign exchange on reported sales and earnings before interest and taxes to be $4 billion and $900 million, respectively.

    Still, executives said inventory management in China was “ahead of plan” as it recalibrates supply and navigates COVID-19 related restrictions there. And they said that consumer demand was still strong, despite rising prices. Friend and CEO John Donahoe both repeated that Nike remained customers’ “No. 1 cool” and “No. 1 favorite” brand.

    Donahoe said shoes like the Air Max Scorpion — which offered the “most air ever, in terms of pound per square inch” — reflected Nike’s commitment to innovation. The company’s Travis Scott and LeBron 20 sneakers also remained popular, executives said. The back-to-school season, and demand for its Jordan and Converse sneakers, were also solid.

    As for fiscal first-quarter financials, Nike reported net income of $1.5 billion, or 93 cents a share, compared with $1.9 billion, or $1.16 a share, in the year-earlier period. Sales came in at $12.7 billion, compared with $12.2 billion a year ago.

    Analysts polled by FactSet expected earnings of 92 cents a share on sales of $12.28 billion. Shares of Nike
    NKE,
    -3.41%
    were last down 9.3% after hours, but fell more than 10% at one point after the close.

    Prior to the report, analysts following Nike had zeroed in on the impact of the stronger U.S. dollar, the impact of China’s COVID lockdowns, as well as the effects from bigger discounts to sell shoes and other gear that sat around for too long due to backups in the company’s supply chain. The back-to-school season, and competition with the likes of Adidas AG
    ADDYY,
    -5.21%
    were also points of focus for Wall Street.

    Gross margins fell to 44.3% from 46.5% during the quarter. Nike executives said the decrease “was primarily driven by North America, which took measures to liquidate excess inventory through Nike Direct markdowns and wholesale marketplace actions.”

    Inventory for Nike stood at $9.7 billion, a 44% increase from the year-earlier period, due to what executives described as “ongoing supply-chain volatility, partially offset by strong consumer demand during the quarter.”

    Nike, in June, said it expected “higher promotional activity” in the first quarter, as it tries to sell seasonal items that arrived late, following the factory closures last year in Asia. However, for the full year ahead, management at that time said it was planning for “mid-single-digit price increases.”

    Executives also said then that they were planning to expand sales that go directly to consumers, via its own stores and online. The company over the years has been trying to rely less on retail chains like Foot Locker Inc.
    FL,
    -6.36%
    for sales.

    Shares of Nike have fallen 43% so far this year. By comparison, the S&P 500 index
    SPX,
    -2.11%
    is down around 24% over that time.

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  • Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

    Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

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    Talk about dropping the ball.

    New York Yankees star Aaron Judge hit his 61st home run of the season Wednesday night, tying the American League record — but leaving at least one person with good reason to frown, despite having just witnessed baseball history firsthand.

    A Toronto Blue Jays fan sitting in the left-field stands at Toronto’s Rogers Centre, where Judge blasted the home run that tied fellow Yankees slugger Roger Maris for the league single-season record, was almost ideally positioned — and even equipped — for this once-in-a-lifetime opportunity. Unfortunately, the ball glanced off his glove and landed in the Blue Jays bullpen below.

    And a potentially huge payoff slipped through his fingers.

    The fan was later revealed to be a 37-year-old Toronto restaurant owner, who reportedly gave his name as Frankie Lasagna to the Canadian Press. He said normally he “would never ever bring a glove other than this situation,” with his left-field seat a reasonably likely landing spot for a home run by the right-handed-hitting Judge and history on the line.

    In video footage, the fan appears visibly upset after missing the ball and his chance to be a bit player in baseball history. “The disbelief comes over you and just the shock and the amazement,” he said. “I was like, ‘Oh my God, I almost had it.’ “

    Don’t miss: Aaron Judge looks to break American League home-run record — and then get the Yankees to break the bank

    Opinion: Aaron Judge hits 61st homer, but can he save Major League Baseball from itself?

    David Kohler, CEO of California auction house SCP Auctions Inc., estimated the value of a ball hit for Judge’s home 61st home run could be between $200,000 and $250,000. And if this was Judge’s last home-run ball of the season, it could end up being valued at more than $1 million.

    See: Aaron Judge’s milestone home run balls could be worth millions

    “The Yankees are beloved,” Kohler said. “Aaron Judge is beloved. There’s no negativity here like the steroid era in the past.” (The only players to have hit more than 61 home runs in a season have been linked with performance-enhancing drugs and played for National League clubs.)

    The moment went viral on Twitter after the game.

    The historic ball landed in the Blue Jays bullpen and eventually made its way to Judge. The Yankees star didn’t keep it for long, however, as a video of Judge gifting the ball to his mother was posted on Twitter
    TWTR,
    -1.18%
    after the game.

    “It’s a moment that I’ll never forget. I’ll cherish it,” the Yankees right fielder said. “Having my mom here supporting me — she’s been here through it all. That’s for sure. The Little League days. Getting me ready for school. Taking me to my first couple of practices and games. Being there for my first professional game and being there when I debuted and now getting chance to be here. This is something special. We’re not done yet.”

    Judge tied the AL record held since 1961 by Maris, who also manned right field in the Bronx. Maris made $32,000 during that 1961 season with the Yankees, which would be worth around 10 times that today, according to Saving.org. Judge is considered undercompensated with his 2022 season salary of $19 million, according to contract data from Spotrac.

    What would the Toronto restaurateur have done with the ball? Some fans give record-breaking memorabilia to the athletes accomplishing the noteworthy feats, often in exchange for autographs and future game tickets.

    “I would have held on to it for as long as I could [to] negotiate,” the Torontonian said. “Maybe get Judge to try to come to the restaurant.”

    MarketWatch sports news:

    The Mets, owned by hedge-fund manager Steve Cohen, now have the highest payroll in baseball: $273.9 million

    How Roger Federer became one of the few athletes to earn $1 billion: ‘He’s a sports marketer’s dream’

    Brett Favre also sought welfare money for football facility, texts reveal

    Minor-league baseball players unionize, just 17 days after organizing began

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  • Yankees slugger Aaron Judge hits 61st home run, tying Roger Maris’ AL record

    Yankees slugger Aaron Judge hits 61st home run, tying Roger Maris’ AL record

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    TORONTO — Aaron Judge tied Roger Maris’ American League record of 61 home runs in a season, going deep for the New York Yankees against the Toronto Blue Jays on Wednesday night.

    The 30-year-old slugger drove a 94.5 mph belt-high sinker with a full-count from left-hander Tim Mayza over the left-field fence in the seventh inning at Rogers Centre, a 117 mph drive that landed 394 feet from the plate. The tiebreaking, two-run drive, which put the Yankees ahead 5-3, clanked off the front of the stands and dropped into Toronto’s bullpen.

    Judge’s mother and Roger Maris Jr. rose and huegged from front-row seats. He appeared to point toward them after rounding second base, them was congratulated by the entire Yankees team who gave him hugs after he crossed the plate

    Judge moved past the 60 home runs Babe Ruth hit in 1927, which had stood as the major league mark until Maris broke it in 1961. All three stars reached those huge numbers playing for the Yankees.

    Barry Bonds holds the big league record of 73 for the San Francisco Giants in 2001.

    Judge had gone seven games without a home run — his longest drought this season was nine in mid-August. This was the Yankees’ 155th game of the season, leaving them seven more in the regular season.

    The home run came in the fourth plate appearance of the night for Judge, ending a streak of 34 plate appearances without a home run.

    Judge is hitting .314 with 130 RBIs, also the top totals in the AL. He has a chance to become the first AL Triple Crown winner since Detroit’s Miguel Cabrera in 2012.

    Maris hit No. 61 for the Yankees on Oct. 1, 1961, against Boston Red Sox pitcher Tracy Stallard.

    Maris’ mark has been exceeded six times, but all have been tainted by the stench of steroids. Mark McGwire hit 70 home runs for the St. Louis Cardinals in 1998 and 65 the following year, and Bonds topped him. Sammy Sosa had 66, 65 and 63 during a four-season span starting in 1998.

    McGwire admitted using banned steroids, while Bonds and Sosa denied knowingly using performing-enhancing drugs. Major League Baseball started testing with penalties for PEDs in 2004, and some fans — perhaps many — until now have considered Maris the holder of the “clean” record.

    Among the tallest batters in major league history, the 6-foot-7 Judge burst on the scene on Aug. 13, 2016, homering off the railing above Yankee Stadium’s center-field sports bar and into the netting above Monument Park. He followed Tyler Austin to the plate and they become the first teammates to homer in their first major league at-bats in the same game.

    Judge hit 52 homers with 114 RBIs the following year and was a unanimous winner of the AL Rookie of the Year award. Injuries limited him during the following three seasons, and he rebounded to hit 39 homers with 98 RBIs in 2021.

    As he approached his last season before free agent eligibility, Judge on opening day turned down the Yankees’ offer of an eight-year contract worth from $230.5 million to $234.5 million. The proposal included an average of $30.5 million annually from 2023-29, with his salary this year to be either the $17 million offered by the team in arbitration or the $21 million requested by the player.

    An agreement was reached in June on a $19 million, one-year deal, and Judge heads into this offseason likely to get a contract from the Yankees or another team for $300 million or more, perhaps topping $400 million.

    Judge hit six homers in April, 12 in May and 11 in June. He earned his fourth All-Star selection and entered the break with 33 homers. He had 13 homers in July and dropped to nine in August, when injuries left him less protected in the batting order and pitchers walked him 25 times.

    He became just the fifth player to hold a share of the AL season record. Nap Lajoie hit 14 in the AL’s first season as a major league in 1901, and Philadelphia Athletics teammate Socks Seabold had 16 the next year, a mark that stood until Babe Ruth hit 29 in 1919. Ruth set the record four times in all, with 54 in 1920, 59 in 1921 and 60 in 1927, a mark that stood until Maris’ 61 in 1961.

    Maris was at 35 in July 1961 during the first season each team’s schedule increased from 154 games to 162, and baseball Commissioner Ford Frick ruled if anyone topped Ruth in more than 154 games “there would have to be some distinctive mark in the record books to show that Babe Ruth’s record was set under a 154-game schedule.”

    That “distinctive mark” became known as an “asterisk” and it remained until Sept. 4, 1991, when a committee on statistical accuracy chaired by Commissioner Fay Vincent voted unanimously to recognize Maris as the record holder.

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  • Retire to Portugal? Hot springs in January, no traffic, and universal health care — the best retirement escape you’ve never heard of

    Retire to Portugal? Hot springs in January, no traffic, and universal health care — the best retirement escape you’ve never heard of

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    Money manager Matt Patsky stood at the window of his hotel on the Portuguese island of São Miguel in March last year, looking out over the Atlantic, and thought: I’m not sure we can retire here after all.

    He told his husband, “I don’t know [if] we could live here. It looks like the people are crazy. There are people going in the water, swimming in the ocean. How crazy do you have to be to go swimming in the Atlantic in March?”

    Patsky, 56, mentioned this to a local real-estate agent later that day. The man didn’t understand the issue. The water, he said, was probably no cooler than 65 degrees.

    How these Americans save money in retirement: They live in Spain

    As Boston-based Patsky adds: In New England you’re lucky if the water gets that warm in August.

    It’s “one of the great selling points of the Azores,” he says. “It is rarely below 60. It is rarely above 80. And the water temperature tends to be steady between 65 and 75 degrees.”

    Patsky says he and his husband, a retired businessman who’s 66, are “80%” sure they are going to live outside the United States when they retire. They are tired especially of the politics and the racial tensions.

    The No. 1 thing that attracted them to the Azores — which lie barely more than twice as far from Boston as from Lisbon — wasn’t the weather. It was the emigration.

    Portugal, they discovered, offers the all-round fastest, cheapest, easiest way to get a so-called golden visa, putting the recipient on a fast track to permanent residence and citizenship.

    You have to have means, but this is not purely for Rockefellers. If you want to get Portuguese residency, and a passport, you need to buy a home in the country and generally to put at least some money into fixing it up, and spend at least seven days a year in the country for the next five years.

    After six months, you get a residency card. After five years, a passport.

    The threshold prices vary, depending on the type of home you buy and where you buy it, but they start at €280,000 (about $310,000).

    As part of the deal, says Patsky, you have to buy the home with cash. You can’t take out a Portuguese mortgage. But you can always raise the cash by remortgaging a U.S. home. The money thresholds are lower than in many other countries. And the seven-day requirement lets Patsky continue his job in Boston, as the CEO of socially responsible investing company Trillium, during the five years.

    A small but growing number of Americans are choosing to retire abroad — some because it’s cheaper; some because they have family or roots overseas; and some because of lifestyle, culture or ambience. The number of retired U.S. workers receiving Social Security checks overseas has risen by a third in 10 years, and that doesn’t count all the “retirement refugees” who get their benefits deposited in a bank account in the U.S.

    Europe is by far the most popular destination by continent, with about a quarter of a million U.S. retirees, based on Social Security direct deposits. That includes nearly 13,000 in Portugal.

    “Portugal has been so welcoming to the LGBT community, that you are seeing a huge number of LGBT couples looking at Portugal,” reports Patsky. On their trips to the Azores, Patsky says he and his husband have been bumping into other LGBT couples from the U.S. looking at golden visas as well.

    On a recent trip they overheard four American women at the next table in a restaurant. It was “two lesbian couples from Philadelphia, looking at the ‘golden visa’ and looking at property in the Azores. We ended up sitting with them with my iPad open looking at property.”

    You can see the islands’ attraction. There are regular flights from various North American and European cities, Patsky says. “It’s a 4½-hour flight from Boston, and, because of our large Azorean population [in New England], there are actually daily flights,” he says.

    Pretty much everyone on the island speaks some English, which is taught in schools as a compulsory second language.

    “It’s like living in a Portuguese fishing village,” Patsky says of Ponta Delgada, the main city on São Miguel. “It has a lot of the same feel as Provincetown [on Cape Cod], in terms of being a fishing village. It’s quaint.” The population is about 70,000. “It’s a good size, and it’s got a very vibrant economy.”

    Thanks to some spectacular cliffs, São Miguel — one of the nine islands that the Azores comprise — has hosted the Red Bull World Cliff Diving World Series on several occasions, including last year.

    Patsky and his husband love the island’s natural beauty. “January, we were swimming, we were at the hot springs. Incredible. This really is nice weather year round. There is no traffic. There is no rush hour.” The longest distance you could drive on the island, from one point to another, would take you an hour, he says.

    And unlike in Boston, he adds with a laugh, you don’t see snow.

    Both members of the couple are equally eager to retire abroad, Patsky says, in no small part to flee America’s rising racial tensions and poisonous politics. Last year Patsky’s husband, originally from the Philippines, was run over at a pedestrian crossing in Boston, Patsky recalls, and was left lying on the pavement with multiple fractures. When a policeman arrived at the scene, he asked the prone 65-year-old for his Social Security number to determine whether he was in the U.S. illegally, Patsky says.

    “My husband and I want to make sure that our retirement is spent in a country that respects the dignity of every person,” Patsky says, “and that treats access to health care as a human right.” Portugal has a public health service, modeled after Britain’s National Health Service, which is available to all residents.

    The couple had started talking about an “exit plan” right after the 2016 presidential election. Their research led them to Portugal, and then to the Azores.

    They are hardly alone in looking at the Azores. This is starting to turn into a well-trodden exit route. “There are hotel chains that are selling villas at exactly the price point you need to get the golden visa,” Patsky says. They’ll even rent the villa out for you to tourists, to generate income, and say they’ll buy it back after the five years are up.

    Patsky says the couple won’t be moving for at least five years. Patsky’s remaining at the helm of Trillium following its takeover by Australia’s Perpetual Ltd.
    PPT,
    -1.13%    .
    He says one of the key appeals of Portugal’s visa program is that he can carry on working full time in the U.S. while at the same time completing the steps needed to get his Portuguese passport.

    Naturally, there are forms to fill out. You’ll need the usual financial and employment records. You’ll also need an FBI report to prove you have a clean rap sheet. (Pro tip from Patsky: Don’t get your fingerprints done at the police station on card. Get them done electronically at the post office and apply online. It will save you weeks.)

    As for that major retirement headache, health care, you will need to prove you have health insurance in your home country every year during the initial five years, Patsky says. Medicare counts.

    And when you finally retire to the country full time? After your five-year period you’ll have a Portuguese passport. And that means an EU passport. And so you can move anywhere in the EU, including those places with the most lavish, generous public health insurance.

    “You can pick wherever you want to retire because it’s the EU,” Patsky says.

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