Walt Disney Company (DIS) Shares Surge Over 11%
FXOpen
On 14 November, Walt Disney Company (DIS) released an investor report that exceeded analysts' expectations:
→ Earnings per share: Actual = $1.14; Expected = $1.10; Year-on-year growth = +39%.
→ Revenue: Actual = $22.57 billion; Expected = $22.42 billion.
The stock market responded positively, with DIS shares rising:
→ On 13 November, prior to the report's release, the stock closed at $102.56.
→ By the end of the week, DIS closed at $114.94, a gain of more than 11% post-announcement.
The company also reported an increase in its streaming subscribers, reaching 200 million. Investors view this growth as a positive signal for Walt Disney Company, similar to the optimism shown towards Netflix (NFLX), which we discussed on 15 November.
Will DIS shares continue to rise?
Technical analysis of DIS's daily chart indicates that in 2024, price movements have formed a descending channel (shown in red):
→ In late October, market volatility was low, consistent with price stabilisation near the channel's median (indicated by the arrow).
→ Following the news of the earnings report, the stock price climbed to the upper boundary of the channel.
→ The RSI indicator has reached its highest level in years.
Given this, it is plausible to suggest that DIS shares are in a position vulnerable to a correction. Should a correction occur and remain minor (e.g., without significantly dipping into the bullish gap formed last week), it could signal sufficient confidence among bulls to attempt a successful breakout above the channel’s upper boundary, potentially reaching key resistance near the psychological $120 level.
According to TipRanks:
→ 15 out of 30 analysts recommend buying DIS shares.
→ The average 12-month price target for DIS is $122.
Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Euro and Pound Retreat from Highs After Strong US Data
The euro and pound have pulled back from their recent highs as the US dollar regained ground following a batch of stronger-than-expected economic data. The Personal Consumption Expenditures (PCE) price index accelerated to 3.7% year-on-year, compared with expectations of
Alibaba Analysis: Uptrend Break Attempt Amid Rising AI Investment
Alibaba reported its first-quarter results on 20 August, revealing a mixed picture for investors. Revenue increased by 9%, driven by accelerating growth in its cloud computing and AI businesses, but net profit fell by nearly three-quarters as capital expenditure on
EUR/AUD: A Hawkish Euro Meets a Stubborn Downtrend
The euro is riding genuine hawkish momentum right now. It's holding above $1.165 against the dollar, its strongest level since mid-May, with markets fully pricing in an ECB hike in September following June's initial tightening move. That conviction is