DISNEY STRONGLY BULLISH AS RESULTS BEAT ESTIMATES
In the Premarket trading session on Friday, Walt Disney’s stock was trading at 140.62- higher by 5.76% as compared to its previous close.
The company reported its fiscal fourth-quarter earnings after the market close on Thursday. Disney reported EPS of $1.07, 13 cents above the market estimates. Revenue of $19.10 billion was also above the market expectation of $19.04 billion.
The company is going to launch its long-awaited streaming service Disney+ on 12th November. The service will cost $6.99 per month or $69.99 per year and it will feature content from Disney, Pixar, Marvel, Star Wars and more.
Revenue from the Disney media network came in at $6.5B and revenue from Park and Resorts came in at $6.65B. Disney+ will be available on Amazon fire stick as well as Samsung Electronics and LG Electronics smart TVs.
Due to circumstances in Hong Kong that have led to a huge decrease in tourism and based on the Q4 trend the company expects a decline in profit at Hong Kong Disneyland by 80 million for the fiscal first-quarter.
On the technical front, the current price is above the MA5 and the MA20. The current price is above the upper band of the Bollinger Bands and is heading upwards. The stock is expected to trade higher today.
TRADE SUGGESTION- LIMIT BUY AT 140.55 TAKE PROFIT AT 141.55 STOP LOSS AT 140.05