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Disney Share Price: Is it Time to Buy?

The Disney share price has posted a stellar performance this Thursday, notching gains of 1.78%. This comes as enthusiasm continues to build around its latest earnings report.

Disney released Q2 earnings last week. The report showed a miss in the EPS and the revenue but still represented a year-on-year growth as the company’s pandemic recovery remains on track. Yes, the result saw the stock post a decline on the day, but as investors digest the number more closely, there could be water in the rock. 

The focus of investors is the success of its streaming division, Disney+ and the surprise uptick in the company’s otherwise floundering parks and entertainment business. As CEO Bob Chapek told investors, the addition of 7.9 million subscribers to its streaming business and its total subscription base across all DTC offerings clearing 205 million, puts the company in a league of its own.

Capturing additional market share in the streaming business means that Disney now has 205 million direct-to-consumer subscribers, bringing it very close to Netflix’s 221 million users. In addition, Netflix does not have a parks business, a venture which gave Disney a revenue of $6.7 billion. Disney also has some leeway to expand this revenue with a slight adjustment in ticket prices.

According to Chapek, the Q3 demand pipeline for its parks business remains robust and was still “firing on all cylinders due to personalized guest enhancements and customer demand.” With the Disney share price now pushing off lows representing 50% of its August and September 2021 highs, the stock could be an exciting proposition.

Disney Share Price Prediction

An extension of the bounce sends the Disney share price toward 111.77(6 May high). A break of this level brings 118.72 into the picture, leaving additional targets at 128.78 and 136.36 (16 March – 5 April rounding top neckline).

On the flip side, a breakdown of 99.41 continues the descent, targeting 91.82 initially (11 March 2020 low). 85.46 is the site of the previous low of 19 March 2020, forming the next target to the south.

Disney: Daily Chart