$DIS has been on a steady decline since its peak in March ’21, understandably so as COVID restrictions loosen worldwide. However, it has recently bounced off a demand zone from the previous low and is looking to bounce back. It is also reaching the top of a parallel channel, and a penetration through may signal bullish sentiment. It is also oversold on the H1-H4 timeframes.
Disney’s revenue is seasonal, its main revenue source being its linear networks and their parks and attractions play a part too. Approaching summer, there will be higher userbases on Disney’s networks including Disney+, which should increase revenue. Similarly, Disney parks and attractions should be experiencing higher visitors as summer rolls in and children finish their academic year, especially as Disneylands are opening up (e.g. Shanghai re-opened their Disneyland in June as COVID restrictions loosened). New Disneyland rides could help with visitor attraction also.
Disney+ is also a big source of revenue for Disney. In the past few quarters, it has been experiencing increasing subscriptions at a steady rate. It also has been offered in 16 more countries in the past quarter. Furthermore, rival Netflix has experiences a loss in userbase for the first time recently, which could boost Disney’s revenue further.
I also think Disney is a good long term play in general, with its quarterly debt to asset ratios dropping. Will be looking for few month play on Disney, and this earnings report acting as a catalyst to catapult the stock upwards.
Thoughts on opinions would be greatly appreciated.
