Disney Slumped Post-Earnings, but Better Days Likely Ahead

  • DIS.us
    (${instrument.percentChange}%)

Disney Analysis

The stock dropped nearly 10% on Wednesday, despite strong quarterly results, as markets likely focused on poor linear networks performance and underwhelming near-term guidance. Traditional media assets and saw a drop in both revenue and profits, while execs anticipate stagnant y/y operating income in the current quarter for the Experiences segment and a loss for Entertainment Streaming.[1]

However, the company sees robust full year growth for the Experiences division, whereas the combined streaming financials continued to improve, subscribers increased and the company reiterated its goal to turn the business profitable in the calendar Q3. To combat a series of adversities, CEO Bob Iger has been implementing a turnaround plan, which already bears fruit and having fended off challenges by activist investors, the future looks promising.

These efforts have helped the stock to a relief-rally from the multi-year lows, with an approximately 35% Q1 advance. The latest results show that the form is delivering on its promises and this can help the stock resume its advance and take another crack at the 38.2% Fibonacci of its 2021-2023 plunge.

On the other hand, DIS.us rejected this pivotal level recently and Wednesday's slump brings it below the Ichimoku Cloud, exposing to the EMA200 (black line). This creates a precarious technical picture, as Closes below the EMA200 would negate the recent bullish bias and along with the Fibo rejection would bring the multi-year lows back in the spotlight (78.61).

Trade the News: View our Economic Calendar

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 17 Jun 2024 https://thewaltdisneycompany.com/disneys-q2-fy24-earnings-results-webcast/

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure
*

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.