Ever since the merger of Disney and Fox closed earlier this year, the fate of the Fox has been a Big Q. While its new corporate parent has done everything to assure folks that it will not fall over, recent developments have thrown the fate of those decisions into question.
The next 2 films from Fox, the Brad Pitt sci-fi drama Ad Astra and the Christian Bale/Matt Damon racing biopic Ford V Ferrari, are going to be the most important films to the future of Disney’s conjoined film dominion.
Why so important?
In the environment of the Fox/Disney tie-up, the exact purpose of the 20th Century Fox label has not been defined. So, in order for Fox to survive, it needs to prove itself useful.
Should either 1 or both: Ad Astra and Ford V Ferrari become box office hits, the studio would very easily have a defined lane to stay in.
Operating within a PG-13 – R-rated playing field, Fox could evolve into a powerhouse that takes up the mantle that Touchstone Pictures and Hollywood Pictures once operated under in Disney in the ‘90’s.
More mature projects can flourish under this banner, with mid-to-high budget figures and independent of the more blockbuster portions of the joint film operations of Disney/Fox. If this strategy works, more experimental films can be crafted, finding new and exciting paths for creators to take with their work.
Combining the star power of both Ad Astra and Ford V Ferrari, we will see Brad Pitt, Liv Tyler and Tommy Lee Jones leading the 1st film, with Christian Bale, Matt Damon, Jon Bernthal and even Outlander’s Caitriona Balfe taking up the cause for that 2nd picture. That is a lot of well-known names, appealing to a nice cross generational mix of potential film-goers.
With Ad Astra looking to potentially win audiences over with its high minded science fiction, Ford V Ferrari would fulfill the other side of the 2-pronged structure to define the modern era of Fox movie content. That means director James Mangold could hold the Key to the studio’s awards season fate.
Then it comes to 20th Century Fox the truth is this: there are only 3 more films to be released on its Y 2019 calendar: Ad Astra, Ford V Ferrari, and Spies In Disguise. That means the studio’s best chance for an awards season ringer is Mangold’s tale of the fateful 1966 24 Hours of Le Mans.
The merger between Disney and Fox changed the landscape of Hollywood and there are going to be lots of ripples taking shape throughout the rest of Y 2019. While those particular side effects are not set in stone, it’s safe to say that Ad Astra and Ford V Ferrari are going to be the 2 most important films for The Walt Disney Company.
Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.
HeffX-LTN overall technical outlook for RACE is Neutral to Bullish, overhead resistance is at 158.48, and support at 155.89, all Key indicators are flashing Neutral in here. Ferrari finished at 156.49, +1.46 Wednesday in NY.
Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (-7.5% since July 16) as a good entry point in here.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.