How to Trade Disney After Fiscal Q4 Performance
Disney's latest fourth-quarter 2023 earnings results are the first under its new financial reporting structure set by CEO Bob Iger. The company's earnings are now segmented into three core business areas: entertainment, experiences and sports. Learn more about Disney's fiscal fourth-quarter performance and what the analysts are forecasting for the stock.
|Stock:||The Walt Disney Co.|
|Symbol for Invest.MT5 Account:||DIS|
|Date of Idea:||14 November 2023|
|Time Line:||1 - 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 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 2023 Performance
Here are some of the key highlights from the latest fiscal fourth-quarter earnings report from Disney:
- Earnings per share of 82 cents vs 70 cents expected
- Revenue of $21.24 billion vs $21.33 billion expected
- Net income of $264 million up from $162 million the same time last year
- Total Disney+ subscribers: 150.2 million vs 148.15 million expected
- Added 7 million new Disney+ subscribers in the last quarter
- Decline in ad revenue from Disney's ABC Network
- Increasing aggressive cost-cutting measures by an additional $2 billion
Disney beat Wall Street's expectations on earnings per share and the number of total Disney+ subscribers. Investors tend to like it when streaming companies report more subscribers as it means more revenue. However, Disney isn't solely a streaming company as it has other assets in experiences and sports.
Overall, Disney reported lower revenue figures than expected. Ad revenue was significantly lower due to less political advertising revenue, leading CEO Bob Iger to state they could be open to selling their TV assets. The stock popped higher on the news as investors prefer when companies offload non-performing assets.
However, a major issue is that the drop in revenue is the second consecutive revenue miss for the company. It is the first time Disney has had a consecutive revenue miss since the beginning of 2018. This, among other factors, is why Disney announced another $2 billion of cost-cutting measures to bring the total target to $7.5 billion - a significant sum.
It highlights some underlying issues with Disney's current broad business model and something investors should take into consideration.
Disney Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a Disney stock forecast in the past 3 months, there are currently 18 buy, 6 hold and 1 sell ratings on the stock. The highest price level for a Disney stock forecast is $122.00 with the lowest price target at $71.00.
The average price target for a Disney stock forecast is $106.86.
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 break above the post-earnings high at $92.00 to allow for volatility.
- Target just below the highest analyst price target of $122.00.
- 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 = $300.00 potential profit [($122.00 - $92.00) * 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 considering the two consecutive revenue misses Disney has experienced.
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 Admirals 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.
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 Admirals, you can buy shares in companies like Disney with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open 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 Admirals also provide.
This means you can trade long and short to potentially profit from rising and falling stock prices.
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