73.40% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.40% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Scam website
Important Notice - Fraud awareness
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    Disney share price: a COVID-19 loser, now a COVID-19 vaccine winner?

    Perhaps one of the surprise, and non-intuitive aspects of the stock market after a bear phase is that it can be the companies who were most hit by the downturn whose share price recovers best. This may be what we are witnessing at multimedia and entertainment giant Disney, as well as affecting the Disney share price.

    The company’s flagship theme parks were in the firing line of COVID-19 lockdowns. Therefore, it was not surprising that from a December 2019 peak of $153 we saw the Walt Disney share price almost exactly halve by March, as investors fretted over the prospects for the pandemic Achilles Heel of Disney’s fundamentals, its theme parks.

    Learn more about shares trading with us

     

    Disney shares: Q4 update

    The latest update from Disney had most eyes looking at the performance of its parks business, the area directly in the firing line as far as the pandemic is concerned. Fortunately, for Disney shares we have not seen a total closure across the board, as could have been the case. Instead, the sporadic closures and now limited opening have had a partial impact on the performance.

    Year on year revenue for Disney’s parks was down 61%. However, it could be that the greatest barrier to recovery, despite the cost savings, was laying off 28,000 workers. This will undoubtedly slow any fundamental rebound, even if the recent double vaccine boost from both Pfizer and Moderna mean that a return to normality in the hospitality and travel sectors arrives sooner than is currently expected.

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

     

    The first loss in 40 years for Disney shares

    Given the way that hospitality and leisure have been the greatest losers in the economy, it was always going to be the case that Disney shares would be seriously affected by the pandemic. The first annual loss in decades was perhaps not a surprise even though it served up shock value. The most interesting aspect though, is how much the parts of Disney not affected by social distancing have continued to contribute.

    Going forward, it will be these parts of Disney which will determine whether the recovery we have seen in DIS shares from below $80 to nearly $140 is justified? Indeed, $6.9bn of the $7.4bn loss for the fiscal year came from theme parks and associated businesses.

     

    Vaccine gains for the DIS share price

    The double vaccine news seen in the recent past from Pfizer and Moderna contributed to some 20% on the Walt Disney share price. Although the initial squeeze in the wake of Pfizer’s news ahead of the Q4 update three days later was the most spectacular. The explanation for this is it gave investors their first credible glimpse of a post pandemic world and a return to normality.

    However, as is normally the case with the stock market, it is notorious for jumping the gun in terms of either downturns or upturns. Therefore, in the case of Disney shares, while theme parks may have dominated the downturn, it could be that the leader ahead of COVID-19 vaccines doing their job will be the direct to customer business.

     

    Disney+ to drive Disney shares

    The good news is that Disney+, its media streaming service to rival Netflix and Amazon Prime was already on the runway as COVID-19 hit. From a standing start it is now up to 73 million subscribers, as compared to Netflix at 195 million subscribers. It may very well be the case that should Disney+ continue to grow, the Disney share price will be supported more by this than the re-opening of theme parks in 2021.

     

    How to trade shares with ATFX

    Looking to trade Disney shares and other major company shares? Open a live or demo account with ATFX to get up to speed. Start trading now to benefit from competitive spreads, high-quality trade execution, and no commission.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for Disney shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    DIS share price daily chart

    Daily chart analysis showing Disney share price daily movements for 2020

     

    Looking to learn more about risk management and how it can benefit your trading? Check out our Risk and reward ratio article for more insight.

    Take the opportunity to develop your risk management strategy. Understand five key risk management techniques to help you look after your funds.

    Last Updated: 17/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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