The moment of truth for Disney

What will happen?

Disney, the world’s largest family entertainment and media enterprise company, will present its earnings report for the second quarter on August 12 after the stock market closes (23:00 GMT+3). The release will be followed by an investor conference call at 23:30 MT, August 13.

What to expect?

Analysts expect a massive turnaround in Disney’s revenue. The company took losses during the COVID-19 pandemic when its core travels (theme parks, cruises, and hotels) faced closures and capacity restrictions.

As the economic reopening will possibly take longer than it was expected because of rising Delta variant cases worldwide, and Disney's parks coming back to their capacity slowly, investors will also focus on subscriber growth in the entertainment giant's streaming service, Disney+, which was benefiting from the stay-at-home environment.

Technical analyses

Daily chart

The moment of truth is coming for Disney’s stock. Price is getting squeezed between 100- and 200-day moving averages as investors and traders await the Q2 earnings report. The RSI and MACD oscillators also show no clarity since both indicators are “flatting” on their averages. Right now, the price has formed 4 significant levels: $192, $184, $170, $154. If Disney overperforms the expectations, the price will rise to $184 and $192. Otherwise, it might drop and close December 2020 gap at $154.

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Author: FBS Analyst Team

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