Stock Analysis Update – Disney $DIS #DIS

$DIS experienced a sell-off after their latest Q4 earnings due to slowing Disney+ subscriber growth.

Based on the monthly view of the stock

the stock is now at the 20 EMA support line of 159.63.

where do i see the stock heading ?

the bear case is that it may dip further to 145 (another 8% dip)

the bull case is that it may ranged or trend up from 160.

I’m more for the bull case as it is extremely unlikely that the bear case will hold up

  1. With the Disney Parks, Experiences and Products revenues for the quarter increasing to $5.5 billion compared to $2.7 billion in the prior-year quarter.
  2. Even though Disney+ subscription growth has slowed, Disney on the whole still experienced positive revenue and operating income growth from its latest quarterly report
  3. The future growth drivers for Disney just got even more with the declaration of the Disney Metaverse! This is an exciting new opportunity for Disney to leverage on its strong content IP and competitive moats to create even more value and potentially another new revenue segment.
Disney is still experiencing positive revenue and operating income in its latest quarterly report. No change in business fundamentals !

Based on the weekly view of the stock,

the stock is now at the 100 EMA support line of 159.63 which is also its 20 monthly EMA support line. There is a strong confluence of support at the current stock price. Add to that the fact that the stock historically also rebounds off its weekly 100 EMA level as seen below (except for March 2020 which was the famous Covid Market Clash) and I am towards the bull case that we should see $DIS rebound soon over the next weeks or so.

I have already added more $DIS stock to my current position and will look to rebalance back to 10% when the stock trends upwards mid to long term.

For more background on $DIS and why i think it is such a great stock to hold, please click here

Leave a Reply