Disney – Our New Stock
We are proud to announce we have added a new asset for our traders to analyse, trade and enjoy. Disney is one of the most traded stocks in the US with a current volume of almost 10,000,000. Over the past 18 months the stock witnessed 3 interesting periods and movements which we are going to look at as part of the article. In addition, we will look at the most recent elements which traders can consider when investing in Disney CFDs.
The Price Movement
In the last 18 months the asset has witnessed a period in which the stock uncharacteristically, sharply and substantially rose in value. The increase started back in 2019, was from $105 to over $150, almost a 50% increase and taking into account leverage this can be a substantial amount.
However, in 2020 we have seen 2 other major-movements in the market impacting most stocks. One of the two trends was the crash from March that pushed Disney to back down to $85 per stock and then gradually recover after the market settled. CFD crashes can be beneficial as traders have the option to speculate if the asset will decrease in value.
During the previous week, the stock of The Walt Disney Company dropped by 1.72%. The S&P 500 also dropped by 0.50% within the same period. Traders can also use the S&P 500 as a way to determine market sentiment and overall market conditions.
The Walt Disney stock has seen a 5% downtrend from a monthly high. The stock’s prices are testing local support and resistance levels of 115.00 and 122.00. Over the last 5 days the asset has decreased in value, resulting in traders shorting the asset benefiting by the drop of 3.5%. However, if we look at the last 6 months the asset gained. Support and resistance points are indicated below:
Resistance levels: 122.00, 128.00, 135.00.
Support levels: 115.00, 108.00, 100.00.
The Latest News
ESPN features as part of Disney Plus, and is one of the major USPs for the newly formed product. The company has informed that ESPN might have potential near-term concerns amid the suspension of Major League Baseball games and the potential cancellation of NBA matches next season following a new coronavirus outbreak in Florida.
Previously, The Walt Disney delayed the release of the blockbuster Mulan and postponed the sequels to Avatar and Star Wars until next year. The issues in relation to upcoming movies are twofold, firstly this is the main form of income for the company, secondly, production has been halted for months now further delaying future projects and releases.
On a different note, according to Goldman Sachs’ analyst, Brett Feldman, Disney could see more than 150 million Disney+ streaming subscribers by 2025, and has also given the stock a medium term target of $137 as long as we do not see another lockdown. The company had 54.5 million subscribers as of early May which is a positive figure.
The company is “rapidly emerging as a global leader in direct-to-consumer entertainment,” Feldman wrote, and he argued that the consensus view underestimates the profit potential for Disney+. Feldman expects that the service could turn profitable in fiscal 2021, while he said the consensus view is targeting fiscal 2023.
In addition to a further product which Disney now offer and the rising number of subscribers, Disney also have announced the reopening of their theme parks. Without doubt the theme parks also play a major role in their finances but the question stands as to how long film products and releases will be delayed by.
Overall, we are happy to announce a new option for traders after many requests. It’s clear to see there are big price movements over the last 2 years and different elements which can be taken into consideration as part of analysis. These elements include Disney+, reopening of Theme parks, next earning release on the 4th August. All are elements able to provide volatility that can be traded on.