Disney's magic appears in the presentation of its results
Disney results for the second quarter of 2021 were presented yesterday.
Analysts were eager to know how the company performed in a quarter marked by the evolution of the pandemic, following the drop in revenue of the first quarter.
However, the company surprised the market and presented magical results.
Disney's business has come under a lot of pressure this quarter, due to a slowdown in the vaccination process, which has significantly depleted the revenue of its theme parks.
In addition, due to the pandemic, the company decided to focus its efforts on their in demand streaming services, the Disney+ platform, which competes directly with industry giants such as Netflix and HBO.
In the quarterly report presented, the company announced that the Disney+ platform had beaten its sales forecasts and had 116 million paying customers.
In addition, despite the adverse scenario in which their theme park division finds itself, its revenue increased for the first time in five quarters and recorded a profit of $356 million, compared to losses of $1,900 million in the second quarter of 2020.
Despite the market close, investors could not wait to buy shares of the company whose shares rose 5%, exceeding $188 per share.
Source: Admirals MetaTrader 5, DIS weekly - Data range: January 26, 2020 to August 13, 2021, conducted August 13, 2021 at 10:30 am CET. Past performance is not a reliable indicator of future results.
The chart above shows the evolution of Disney's share price since 26 January 2020 on a weekly basis.
In it you can see how since the beginning of 2021 Disney's shares have been in a period of consolidation.
This is common after a period of strong growth, such as the bullish rally that Disney shares experienced from March 2020 when the shares were trading close to $75 and went on exceed $200 at the beginning of 2021.
Since then, Disney's stock price has been a little volatile. Traders have looked for references to re-enter the market, such as the support located in the 23.6 Fibonacci retracement, close to $170.
However, the company's results could be the boost traders needed for stocks to regain the uptrend and seek to mark new all-time highs, surpassing the psychological barrier of $200 per share.
Undoubtedly something to observe during the coming days, where there could also be short trading opportunities, is the evolution of the RSI indicator.
With Admirals' Invest.MT5 account, you can trade Disney and many more stocks! Click the banner below to open an account today:
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 Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) 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 Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on 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, Admiral Markets 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 Admiral Markets 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.