Disney share price trades off trendline support after Q1 results
The long-term uptrend for Disney looks to resume with analysts and IG clients also favouring a long bias to trades on the stock.
The Walt Disney Company
First-quarter (Q1) 2020 results for Disney have been met with a positive after-hours response, with the share price posting a 2% gain in the all session.
Some of the salient features of the results are as follows:
- Revenue +36% (Q1 2020 vs Q1 2019)
- Net Income -23% (Q1 2020 vs Q1 2019)
- Diluted earnings per share (EPS) from continuing operations -37% (Q1 2020 vs Q1 2019)
- Disney+ subscribers 26.5 million (launched in November 2019)
- ESPN+ subscribers 6.6 million (1.4 million in Q1 2019)
- Hulu subscribers 30.4 million (22.8 million in Q1 2019)
Technical view
The share price of Disney has posted a bullish reversal off the 200-day simple moving average (SMA) (blue line on chart). This indication is a suggestion that the long-term uptrend may now be resuming. The stochastic has also reversed sharply out of oversold territory, a bullish short-term consideration. With the trend bias and short-term momentum appearing to be up, 149.70 and 154.20 become the next upside resistance targets from the move higher. 135.85 marks a short-term low, and should the price instead retrace to close below this level, the trend bias would need to be reassessed.
Client view
97% of IG clients with open positions as of 5 February 2020 expect the price of Disney to rise in the near term.
Broker view
A Thomson Reuters analyst poll has an average long-term rating of ‘buy’ for Disney as of the 5 February 2020.
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