How to Trade Disney After Fiscal Q1 2024 Performance
The Walt Disney Company, otherwise known as just Disney, is a global mass media and entertainment conglomerate. It has revenue from multiple divisions including streaming, sports, TV, parks, resorts and more. Learn more about Disney's fiscal first-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 February 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $113.00 |
| Target Level: | $130.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- 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 Q1 2024 Performance
Here are some of the key highlights from the latest fiscal first-quarter earnings report from Disney:
- Earnings per share of $1.22 vs 99 cents expected
- Revenue of $23.55 billion vs $23.64 billion expected
- Net income of $1.91 billion, up from prior year
- Direct to consumer unit $138 million operating loss
- Disney+ subscribers down by 1.3 million
- New ESPN sports streaming launch in 2025
- $1.5 billion stake in Fortnite Studio and Epic Games announced
On most metrics, Disney beat analyst expectations. Both earnings per share and revenue were higher than expected. This led Disney to forecast fiscal 2024 earnings per share of $4.60 which is around 20% higher than 2023.
The 1.3 million loss of subscribers at Disney+ did have some analysts concerned. The loss was due to a price rise in its subscription service. However, the earnings report showed the company made a higher average revenue per user.
Disney also announced plans to launch its sports streaming service with ESPN, Fox, and Warner Bros. Discovery in 2025. This could be an interesting revenue stream but is too far away to determine its impact.
Overall, Disney reported it is on target to meet its goal of cutting costs by at least $7.5 billion by the end of fiscal 2024. However, some investors are concerned about the activist investor Nelson Peltz who is putting pressure on the management team to improve performance.
The activist investor renewed its battle with the Disney board at the end of last year, trying to force through a boardroom shake-up. Another concern is if the higher streaming prices will result in more subscriber losses.
With the stock price already trading around the average analyst price target, further gains may be limited. Tracking Disney's numbers over the next few quarters becomes even more important, as some analysts have moved to a hold and sell rating on the stock, as shown below.
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 16 buy, 4 hold and 1 sell ratings on the stock. The highest price level for a Disney stock forecast is $130.00 with the lowest price target at $82.00.
The average price target for a Disney stock forecast is $115.50.
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 $113.00 to allow for volatility.
- Target just below the highest analyst price target of $130.00.
- 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 = $170.00 potential profit [($130.00 - $113.00) * 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 low price target of some analysts and that some have moved to a hold/sell rating on the stock.
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.
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 potentially profit from rising and falling stock prices.
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