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 client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
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 client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
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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How to Trade Disney Stock in the Week Ahead

Walt Disney Company will release its latest earnings report after Tuesday’s bell next week. 

We will look at the latest price action in this article and discuss the following path for the stock. 

DIS – Monthly Chart

disney monthly chart

On the monthly chart, Disney looks to have found a strong support level at the $100 mark and could push higher. DIS stock is down by 30% this year, but traders can look for an opportunity here. The key will be finding a short-term rally to play a longer-term move. 

The past few years were painful for Disney investors as the pandemic led to the shutdown of theme parks and resort segments. The launch of the Disney+ streaming service proved to be the thing that saved the business.

As revenue stalled, Disney spent billions of dollars on its streaming business to keep pace with Netflix and other movie platforms. That led to a drop in revenues of 6% in 2020. Earnings per share (EPS) was hit worse with a 65% drop. Those headwinds eventually disappeared, but revenue was only 3% higher in 2021. 

In the latest earnings release, the company is expected to post quarterly earnings of $0.57 per share, which would be a year-over-year change of +54.1%. Revenues are expected to be $21.11 billion, up 13.9% on the year. 

On the theme parks side of the business, China’s zero covid policy affects Disney. Disney’s (DIS) Shanghai resort suspended operations to comply with virus prevention measures. Many visitors have been locked inside the park until they show a negative test. 

A future revenue stream for Disney could be the metaverse, and CEO Bob Chapek confirmed that this would work with Disney+. Users could experience theme park rides in virtual reality to support “the 90 percent of people that will never ever be able to get to a Disney park”. 

Disney could see a positive continuation of its recent earnings trends, and the stock has the potential to continue higher from this base.

Last Updated: 03/11/2022

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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