How to Trade Disney After Fiscal Q1 2024 Performance

[ad_1]

The Walt Disney Company, otherwise known as just Disney, is a global mass media and entertainment conglomerate. It has revenue from multiple divisions including streaming, sports, TV, parks, resorts and more. Learn more about Disney’s fiscal first-quarter performance and what the analysts are forecasting for the stock.











Stock: The Walt Disney Co.
Symbol for Invest.MT5 Account: DIS
Date of Idea: 14 February 2024
Time Line: 1 – 6 months
Entry Level: $113.00
Target Level: $130.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High

  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Disney Fiscal Q1 2024 Performance

Here are some of the key highlights from the latest fiscal first-quarter earnings report from Disney: 

  • Earnings per share of $1.22 vs 99 cents expected 
  • Revenue of $23.55 billion vs $23.64 billion expected 
  • Net income of $1.91 billion, up from prior year 
  • Direct to consumer unit $138 million operating loss 
  • Disney+ subscribers down by 1.3 million 
  • New ESPN sports streaming launch in 2025 
  • $1.5 billion stake in Fortnite Studio and Epic Games announced 

On most metrics, Disney beat analyst expectations. Both earnings per share and revenue were higher than expected. This led Disney to forecast fiscal 2024 earnings per share of $4.60 which is around 20% higher than 2023.  

The 1.3 million loss of subscribers at Disney+ did have some analysts concerned. The loss was due to a price rise in its subscription service. However, the earnings report showed the company made a higher average revenue per user.  

Disney also announced plans to launch its sports streaming service with ESPN, Fox, and Warner Bros. Discovery in 2025. This could be an interesting revenue stream but is too far away to determine its impact.  

Overall, Disney reported it is on target to meet its goal of cutting costs by at least $7.5 billion by the end of fiscal 2024. However, some investors are concerned about the activist investor Nelson Peltz who is putting pressure on the management team to improve performance.  

The activist investor renewed its battle with the Disney board at the end of last year, trying to force through a boardroom shake-up. Another concern is if the higher streaming prices will result in more subscriber losses.  

With the stock price already trading around the average analyst price target, further gains may be limited. Tracking Disney’s numbers over the next few quarters becomes even more important, as some analysts have moved to a hold and sell rating on the stock, as shown below.

Disney Stock Forecast – What do the Analysts Say?

According to analysts polled by TipRanks for a Disney stock forecast in the past 3 months, there are currently 16 buy, 4 hold and 1 sell ratings on the stock. The highest price level for a Disney stock forecast is $130.00 with the lowest price target at $82.00. 

The average price target for a Disney stock forecast is $115.50.

Source: TipRanks, 14 February 2024

 

An Example Trading Idea for the Disney Stock Price

An example trading idea for the Disney share price could be as follows:  

  • Buy the stock on a break above the post-earnings high at $113.00 to allow for volatility. 
  • Target just below the highest analyst price target of $130.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Disney shares:  

    • If target is reached = $170.00 potential profit [($130.00 – $113.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the low price target of some analysts and that some have moved to a hold/sell rating on the stock.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Disney stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Disney Stock in 4 Steps  

With Admirals, you can buy shares in companies like Disney with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Disney. Monthly. Date: Jan 2009 to Feb 2024, captured on 14 Feb 2024. Past performance is not a reliable indicator of future results or future performance.

 

Click on the banner below to trade Disney stock today ▼▼▼ 

Do You See the Disney Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Disney share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    

  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 

[ad_2]

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top