The energy industry has undergone several major changes in the XXI that are becoming increasingly apparent…
Will Disney survive amid coronavirus?
2020-04-30 • Updated
The company’s stock declined hugely, but Disney+ can offset some part of it. We will know the true picture on May 5 after its earnings report.
The largest part of the Disney’s revenue comes from parks, experiences, products and studio entertainment, that are not available because of the current lockdown. However, third of its revenue is provided by Media Networks. Its successful Disney+ streaming service can save the corporation from the dramatic fall. This service got 50 million subscribes in March due to entering to European and Indian markets before the shutdown. These days social distancing and stay-at-home regime can boost the amount of subscriptions. It's easy to believe that Disney+ can approach Netflix numbers. If it does that, it may double the size of any other segment in the corporation.
Anyway earnings will be damaged by the coronavirus pandemic. Let's look at this another way, it’s a good entry point to the Disney stock. Theme parks will soon reopen as many US states have started to ease their lockdowns. The state of Florida has already released guidelines for how Disney World can safely come back to work. So, if the pandemic ends sooner than we expect, the Disney stock will ramp up even without the help of Disney+. However, the recovery won’t happen immediately, it will take a long time.
Let’s see where is the Disney stock price now and where it is headed. The price declined from 148.00 to 80.00 at the beginning of the lockdown, but then it rebounded about 50% from their recent low. Now the price is climbing up. We can see that the 50-day moving average has crossed the 100-day moving average bottom up, what is a signal to buy. Resistance line is 121.00. Support lines are 105.00 and 95.00.
Similar
More and more analysts are sure Brent oil will surpass $100 a barrel. So how heavily will oil move the markets, and what will the direction of the movement be? Let's find out!
About PayPal PayPal is an electronic commerce company that facilitates payments between parties through online transfers…
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...