DISNEY NEWS AND TECHNICAL ANALYSIS
Following a weaker-than-expected “Avatar” opening weekend, Disney shares drop.
Disney shares hit a 52-week low, after James Cameron’s “Avatar: The Way of Water” fell short of box office expectations over the weekend.
Disney stock is down more than 40% in the past year.
The company is in the midst of restructuring its streaming business after Bob Iger returned as CEO in November.
Shares of Disney dropped on Monday following a weaker-than-expected opening box office weekend for James Cameron’s “Avatar: The Way of Water.”
Disney shares closed down more than 4% at $85.78, after hitting a 52-week low. The company has seen its stock fall more than 40% in the past year.
Industry analysts pegged the long-awaited “Avatar” sequel as a box office winner for Disney and are viewing the holiday season as a make-or-break period for the film.
The film notched $134 million at the domestic box office during its opening weekend, falling short of analyst expectations of $175 million and Disney’s own forecast of between $135 million and $150 million.
Still, box office analysts aren’t concerned yet. Internationally, “Way of Water” raked in $300.5 million, bringing its total opening weekend number to $434.5 million. The original film, released in 2009, made just $77 million during its first weekend but went on to become the highest-grossing film of all time.
In the backdrop, Disney has been facing challenges since the start of the pandemic, when movie theatres and theme parks were shut down for months. The movie theatre industry is still crawling back, with the exception of hits like Paramount Global s “Top Gun: Maverick.” Disney theme-park goers have also been contending with rising prices.
DISNEY TECHNICAL ANALYSIS DAILY CHART:
In daily Disney is currently is trading in down channel. Disney is currently trading below all SMA.
RSI is in oversold zone which shows bullishness. And stochastic is suggesting downtrend.
Disney immediate support level is at 85.39 & resistance level is at 86.24
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