Disney+ allows Disney to make a profit despite the pandemic.

February 12, 2021 14:30

Last December, we observed that the launch of new Marvel and Star Wars series was giving a boost to the Disney+ streaming platform. This already seems to be paying off if we look at their latest earnings results.

Yesterday, after the close of the trading day, The Walt Disney Company announced its, with a net profit per share of $0.32 with a revenue of $16.25 billion, far exceeding the expectations generated by the market, since a loss per share of $0.32 was expected on revenue of $15.91 billion.

Quarterly net profit reached 17 million dollars, giving Disney a return to profit since the start of the pandemic, since the coronavirus crisis seriously affected film releases and theme parks, therefore it was a safe bet that its streaming service was to be a success. 

Despite the fact that there has been an increase in the price of the subscription at a global level, the new series announced last December has caused an avalanche of new customers eager to consume this new catalogue, together with its classic films. This makes this app a great ally in these times of pandemic, while we spend more time at home due to the restrictions on traditional leisure. Subscriptions have reached a total of 95 million, putting pressure on its main competitor, Netflix.

These results are being well received by the market, since the pre-opening shows a rise of more than 2%, which could lead the price to continue its upward trend and thus seek the important level of $ 200 per share.

Technically speaking, we can observe a strong uptrend after marking annual lows at the beginning of the pandemic last March at $ 79.05 per share that led it to exceed its pre-pandemic levels.

After rebounding for the last time in its uptrend line, the price has been supporting its 18-session moving average in the black to exceed $190 per share, although to reach this level, it previously had to make a small correction to 23.8% fibonacci retracement level to catch a new bullish momentum.

Currently, it is far from its moving averages and its first support level is at the previous highs around 183 dollars per share and in its stochastic indicator, we observe that it is at overbought levels, so it would not be ruled out that the price could make some correction before attacking the important level of 200 dollars per share, although the feeling for the moment remains bullish.

Source: Admiral Markets MetaTrader 5. Disney daily chart. Data range: from September 27, 2019 to February 12, 2021. Prepared on February 12, 2021 at 1:00 p.m. CET. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 25.27%
  • 2019: 31.90%
  • 2018: 1.99%
  • 2017: 3.16%
  • 2016: -0.82%

With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Microsoft and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:

Trade With MetaTrader 5

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:

  1. 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.
  2. 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.
  3. 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.
  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  5. 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.
  6. Any kind of past or modeled 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.
  7. 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.
Avatar-Admirals
Admirals
An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.