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%

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