How to Trade Disney (DIS) After Fiscal Q4 2024 Performance

In March 2021, Disney recorded an all-time high share price of $203.02. For the next several years, the share price collapsed by over 60% and has still not recovered the ground it has lost. This is why investors are keen on understanding what the future holds for Disney and its growth prospects. 

Learn more about Disney's fiscal fourth-quarter 2024 performance and what analysts are forecasting for the stock.

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Disney Fiscal Q4 2024 Performance

Here are some of the key highlights from the fiscal fourth-quarter 2024 earnings report from Disney: 

• Earnings per share of $1.14 vs $1.10 expected 
• Revenue of $22.57 billion vs $22.45 billion expected 
• Net income of $460 million from $264 million in the same quarter last year 
• Operating income is up 23% to $3.66 billion compared with the same quarter the previous year 
• Disney beat analyst estimates on most financial metrics. Its entertainment division revenue - which includes streaming, films and TV - was up 14% year over year to $10.83 billion.  

Its films added $316 million of profit due to the success of Disney Pixar's "Inside Out 2" which became the highest-grossing animated film of all time. Its "Deadpool & Wolverine" movie became the highest-grossing R-rated film of all time. This helped the entertainment division earn a $1.1 billion profit but there are concerns that it may not be able to produce such high-grossing films in the near future which will impact its bottom line.  

Disney's combined streaming business reported an operating income of $321 million compared with a loss of $387 million last year. Its Disney+ Core subscribers, excluding Disney+ Hotstar, grew by 4.4 million subscribers to a total of 122.7 million. Executives said that over half of its new US subscribers chose the cheaper, ad-supported tier which could help with Disney's long-term advertising revenue. 

However, Disney is expecting a decline in subscribers during the first fiscal quarter of 2025 due to the end of a promotional offer. Revenue for its TV networks was down 6% and profit sank 38%. ESPN's profit also fell 6% due to higher programming costs and fewer customers. Operating income at its international parks fell 32%, while its domestic parks rose 5%.  

This mixed revenue and profit levels in each of Disney's divisions is one reason why some analysts are moving to a hold rating on the stock as highlighted below.

Disney Stock Forecast - What do the Analysts Say?

According to 20 analysts polled by TipRanks for an Disney stock forecast in the past 3 months, there are currently 15 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a Disney stock forecast is $140.00 with the lowest price target at $108.00. 

The average price target for a Disney stock forecast is $124.29.

An Example Trading Idea for the Disney Stock Price

An example trading idea for the Disney share price could be as follows:  

• Buy the stock on a pullback to $109.00 to allow for volatility. 
• Target just below the highest analyst price target of $140.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Disney shares:  
  • If target is reached = $310.00 potential profit [($140.00 - $109.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as Disney's divisions are reporting mixed revenues and more analysts are moving to a hold rating.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Disney stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Disney Stock in 4 Steps  

With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admiral Markets to access the dashboard.
2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
3. Search for your stock in the search window at the top.
4. Input your entry, stop-loss and take profit levels in the trading ticket.

Click on the banner below to trade Disney stock today ▼▼▼ 

Do You See the Disney Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Disney share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to speculate on rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

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