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.
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.
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