Walt Disney Trading forecasts and signals

Entertainment giant The Walt Disney reported a profit of $1.41 billion (77 cents per share) in the 3rd fiscal quarter, compared with $918 million (50 cents per share) a year earlier. Adjusted earnings were $1.09 per share versus 80 cents. Revenue for the reporting period increased from $17.02 billion to $21.504 billion.The number of Disney+ subscribers increased by 14.4 million and exceeded the Netflix streaming service. It also became known that the cost of a monthly subscription to the ad-free service will increase by 38% in December 2022, to $10.99.The revenue of the Disney Parks, Experiences and Products division increased by 70% to $7.39 billion, and the revenue of Disney Media and Entertainment Distribution increased by 11% to $14.11 billion.Shares of The Walt Disney Company on the NYSE on August 10 rose by 3.98%, to $ 112.43 per paper, and on the premarket on August 11, quotes are adding 7.26% at the moment, to $ 120.59 per ...

The market the day beforeThe US stock exchanges completed the trading session on August 10 with a steady growth. The S&P 500 rose 2.13% to 4210 points, the Nasdaq rose 2.89%, the Dow Jones added 1.63%. Raw materials and processing companies (+2.88%), as well as representatives of the discretionary goods sector (+2.87%) became the leaders of growth.Company newsThe reporting of Coinbase Global (COIN: +7.37%) for April-June turned out to be significantly weaker than forecasts in terms of revenue. In addition, the company finishes the second quarter in a row with a loss due to a drop in trading activity. Coinbase's own benchmarks for the number of active investors for the year have been reduced from 15 million to 9 million.Qorvo's quarterly revenue and profit (QRVO: +6.63%) decreased slightly less than the consensus expected. However, the company's management presented a weak guidance until the end of the year.Walt Disney's revenue (DIS: +3.98%) from amusement parks and streaming service for the second quarter exceeded market expectations. In terms of the number of subscribers, Disney+ has overtaken Netflix for the first time.We expectThe data on inflation in the US for July published the day before were positively received by the bidders. Consumer price growth slowed from June 9.1% to 8.5% YoY with a consensus of 8.7%. This was facilitated by a drop in car fuel prices by 7.7% last month. The recorded statement of inflation indicates that it has passed a local peak. As a result, the investment community begins to count on a less intensive tightening of monetary policy by the Fed. According to CME FedWatch, after the publication of CPI data, the futures market reduced the probability of an increase in the base rate by 75 bps. from 68% to 43%.At the same time, core inflation remains high due to rising rental costs and demand for services. Representatives of the Fed emphasize that in order to switch to measures stimulating economic growth, it is necessary to achieve a stable and consistent slowdown in inflation.Meanwhile, as a result of the recent rally, the S&P 500 recovered by 15% from the June low, returning to the levels of early May. Nasdaq rose by 20.8% as investor interest in technology sector companies recovers as treasury yields decline. However, the high-tech index needs to overcome the November high in order to confirm entry into a new phase of the bull market.The stock exchanges of the APR closed in the black on August 11. Hong Kong's Hang Seng gained 2.38%, China's CSI 300 rose 2.04%. Trading on the Japanese stock exchange was not held on the occasion of the holiday. EuroStoxx 50 has been declining by 0.09% since the opening of trading.Brent crude futures are trading at $97 per barrel. The price of gold is $1801 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4170-4230 points.MacrostatisticsThe producer price index for July will be published today. The forecast assumes a slowdown in the growth rate from June 11.3% to 10.4% YoY.Sentiment IndexThe sentiment index rose from 44 to 49 points.Technical pictureThe S&P 500 showed the strongest intraday growth in the last two weeks. The benchmark has overcome the resistance level of 4,200 points, the next growth target for testing is the mark of 4,270 points. The RSI is in the overbought zone, but the MACD still does not signal a trend reversal. The nearest support level for the broad market index was the upper limit of the ascending channel at the level of 4100 ...

The session on July 18, the main American stock exchanges ended in the red. The S&P 500 declined by 0.84% to 3,831 points, the Dow Jones lost 0.69%, the Nasdaq declined by 0.81%. Energy companies closed in the black (+1.96%), producers of cyclical consumer goods (+0.22%), as well as raw materials and supplies (+0.22%). The healthcare industry turned out to be an outsider (-2.15%) on the eve of reports from medical equipment manufacturers.Company newsGoldman Sachs (GS: +2.5%) reported second quarter EPS better than consensus expectations. DPS increased by 25%.Apple (AAPL: -2.1%) plans to slow down the pace of hiring new employees and optimize the costs of some departments next year, fearing a recession.The takeover of Seagen (SGEN: -5.7%) by Merck (MRK: -2.76%) may be postponed until additional clinical trial results are available, according to the WSJ.We expectMarket participants are taking a wait-and-see attitude, weighing a number of "bullish" and "bearish" theses. The high probability of a 75 bps rate hike at the next Fed meeting is already being assessed as a positive factor. The thesis of reaching the peak of inflation is supported by the easing of tension in supply chains, an excess of stocks at retailers and a decline in commodity prices in the medium term. The risk of a decrease in corporate profits, which worried investors on the eve of the reporting season, has not yet been realized. According to FactSet, the cumulative profit growth of companies from the S&P 500, which have already submitted quarterly results, so far exceeds preliminary estimates. A positive signal for the markets came from China, where changes in monetary policy are expected to stimulate economic growth. However, concerns are caused by an increase in the number of COVID-19 infections in China. Negative factors are expectations of a recession and a decline in corporate profits in 2023, a still strong dollar and new statements by companies about slowing down or freezing hiring of new employees.Trading on July 19 on the sites of Southeast Asia ended mainly in the red zone. China's CSI 300 lost 0.54%, Hong Kong's Hang Seng declined 0.89%. The Japanese Nikkei added 0.65%. Eurostoxx 50 is adjusted by 0.32% since the opening of trading.Brent crude futures are quoted at $105.5 per barrel. Gold is trading at $1,711.3 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3780-3850 points.MacrostatisticsNo significant macro statistics are expected to be published today.Sentiment IndexThe sentiment index rose by one point to 30.Technical pictureThe closest support for the S&P 500 remains the range of 3600-3660 points. The RSI and MACD indicators signal an insufficient strength of the upward momentum. Yesterday, the benchmark bounced off the upper limit of the descending channel and is likely to continue to adjust in the coming trading sessions.ReportsNetflix, Inc. (NFLX) will present quarterly results on July 19 today after the market closes. The consensus forecast predicts revenue growth of 9.4% YoY, to $8.03 billion, with a decrease in GAAP EPS from $2.97 to $2.96. Note that market expectations look very cautious compared to the company's own guidance, which assumes revenue of $8.05 billion with EPS at $3.00. The latest data from Apptopia, which JPMorgan cites, indicate weak trends towards changing the audience of the streaming service in April-June, even despite the successful release of the new season of the popular TV series "Very Strange Things". We do not exclude that the net outflow of subscribers may slightly exceed the 2 million stipulated in the consensus. The reaction of investors to the streaming service's report will depend on whether the company's guidelines for the dynamics of subscribers for the third quarter coincide with market forecasts that suggest an expansion of the audience in the range of 1.5–1.9 million. These values look achievable, but there is no reason to hope for more optimistic forecasts yet. We believe that the expansion of the Netflix subscriber base constrains both the desire of consumers to optimize spending on entertainment, and competition from Apple (AAPL), Disney (DIS) and Warner Bros. Discovery (WBD). Special attention will be paid to management's comments on operating marginality due to the high rates of wage growth in the United ...

The Board of Directors of The Walt Disney Company voted unanimously to extend Bob Chapek's contract as CEO for another three years, until 2025."The pandemic has dealt Disney a heavy blow, but with Bob at the helm, our businesses – from parks to streaming–have not only weathered the storm, but have emerged from it strong," the chairman of the board of directors said in a statement.Bob Chapek has been working at Disney for about 30 years, previously headed the theme parks division and the consumer goods segment. Bob Chapek took over as CEO at a difficult time of the pandemic, when Disney amusement parks were not actually generating revenue. However, he managed to very quickly increase the number of Disney+ subscribers to 137.7 million users worldwide. Recently, the streaming service has started working in the Middle East and North Africa. Disney+ aims to increase the number of subscribers to 260 million by September 2024.Disney's stock has fallen nearly 40% this year. The extension of his contract should not affect the company's shares, because in fact nothing has changed and his board has already been taken into account in the quotes.Disney shares on the NYSE premarket on June 29 are growing by 0.97%, to $96.85 per ...

Over the past two weeks, the S&P 500 index has adjusted by 6.17%, updating the lows of March last year. NASDAQ Composite tested the values of November 2020. The real yield of 10-year treasuries has moved into positive territory, which reduces investors' interest in high-risk assets.The Fed's "hawkish" policy continues: at the May meeting, the key rate was expected to be raised by 50 bps, to 0.75–1%. Plans for further increases remain, but an extension of the target range by 75 bp is not yet being considered. The regulator plans to start reducing the balance sheet as early as June 1, gradually increasing the volume to $95 billion per month. By the end of 2022, the Fed's portfolio will decrease from the current $8.9 trillion by about 6%.The reporting season is coming to an end: the revenue and profit of the reported issuers (91% of companies) increased by 13.4% and 9.1%, respectively. Occidental Petroleum, Pfizer, AMD, and Moderna showed the best results. Did not meet the expectations of analysts of Electronic Arts, The Walt Disney, Coinbase.Ideas and recommendationsBank of America Corporation retains a leading position in the lending market and is seen as the main beneficiary of the interest rate increase. A diversified business model and active development of digital banking will contribute to achieving the $46 target on the horizon of the year.Coinbase Global, the largest crypto exchange, announced a significant drop in revenue in the 1st quarter of 2022. Among the reasons: the weakening of investor activity, a reduction in trading volume due to the correction of cryptocurrencies. Management expects a decrease in commission income and income from paid services while maintaining operating expenses at the same level. Pfizer acquires biopharm company Biohaven Pharmaceutical for $11.6 billion. Pfizer seeks to compensate for the potential decline in revenue from COVID-19 treatment drugs and directs profits from their sale to acquire biotech companies that have promising developments. Pfizer forecasts revenue from this direction in the current year at the level of $54 billion.ExpectationsThe S&P 500 tested support in the area of 3860-3900 points and showed a rebound from local lows. A short-term recovery of quotations is possible. However, with the gradual tightening of financial conditions, the medium-term trend remains downward. The next resistance level for the benchmark is at 4,200 points, and the nearest support is at 3,800 ...

The market the day beforeThe session on May 12, the main American stock exchanges ended in different directions. The S&P 500 index fell by 0.13%, reaching 3,860 points at the moment. The Nasdaq Composite and Russell 2000 rose 0.80% and 0.06% respectively, while the Dow Jones dropped 0.33%. Six of the 11 sectors in the S&P 500 closed lower. IT companies performed the worst (-1.14%), utilities (-1.16%) and representatives of the financial sector (-0.8%).Company newsCEO of FTX crypto exchange, multimillionaire Benkman Fried, bought 56.3 million shares of Robinhood (HOOD: +30%) for a total of $648.3 million, which is equivalent to 7.6% in the broker's capital.Walt Disney Company (DIS: -3%) reported worse than forecast, and also warned that the expansion of the Disney+ subscriber base may slow down in the second half of the year.Coinbase quotes (COIN: +8.9%) increase at the moment after falling by more than 40% during the week. On May 10, the company reported a large and unexpected loss for the first quarter, significantly falling short of consensus.We expectYesterday, the Senate of the US Congress approved Jerome Powell as head of the Fed for a second term. The chairman of the regulator once again stated that he could not guarantee a "soft landing" for the US economy amid the fight against inflation. He also noted that measures to prevent inflation had to be taken even earlier, and stressed that raising rates by 0.5 bps at the next two meetings is considered as a baseline scenario, although an increase of 0.75 bps if necessary is not excluded.The Treasury bond market continued to signal investors' concerns through another rate cut. 10-year treasuries lost 25 bps in a week, showing the largest drop since March 2020. The producer price index (CPI) for April increased by 0.5% mom, coinciding with analysts' expectations, while the final demand index (excluding volatile components) increased by 0.4% (consensus assumed an increase of 0.6%). On an annualized basis, these indicators increased by 11.0% (against +11.5% in March) and by 8.8% (against +9.5% in March) accordingly.The yields of two- and 10-year treasuries decreased by 13 bps and 10 bps, to 2.51% and 2.82%, respectively. The indicator for 30-year securities decreased by one point, to 2.90%.Trading on May 13 on the sites of Southeast Asia ended in the green zone. China's CSI 300 rose 0.69%, Hong Kong's Hang Seng and Japan's Nikkei 225 gained 2.42% and 2.64%, respectively. EuroStoxx 50 has been adjusted by 1.30% since the opening of the session.Brent crude futures are quoted at $106.9 per barrel. Gold is trading at $1,820 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3900-4000 points.MacrostatisticsImportant macro statistics are not expected to be published today.Sentiment IndexThe sentiment index dropped to 35.Technical pictureThe S&P 500 broke through the long-term support level again, reaching a local minimum at 3860 points at the moment. The index was last quoted at this level on March 10, 2021. At the same time, the average trading volumes for the first months of this year significantly exceed the indicators of 2021 and 2020 (excluding the pandemic surge in volatility). The analysis of the RSI and MACD indicators indicates the short-term overheating of the "bullish" ...

Entertainment giant Walt Disney reported revenue of $19.25 billion, which is 23% more than last year. However, analysts had forecast revenue of $20.05 billion. Net profit was $470 million, compared to $901 million a year earlier. Adjusted EPS was $1.08, which is lower than analysts' estimate of $1.19.The number of subscribers streaming Disney+ reached 137.7 million, which is 7.9 million more than last quarter. The total number of users together with Disney+, ESPN and Hula is 205 million. The company confirmed plans to increase subscribers of the Disney+ service from 230 to 260 million and achieve profitability of the segment by September 2024.Walt Disney shares on May 12 at the NYSE premarket fall by 5.14%, to $99.8 per ...

The market the day beforeThe main American stock indexes ended the trading session on May 11 in the red zone. The S&P 500 dropped by 1.65% to 3,935 points, the Nasdaq lost 3.18%, the Dow Jones adjusted by 1.02%. The energy sector (+1.34%) and utility providers (+0.72%) looked better than the market. Among the outsiders were manufacturers of discretionary goods (-3.58%) and the IT sector (-3.16%).Company newsThe quarterly results of Electronic Arts Inc. (EA: +7.97%) were slightly below consensus forecasts, but management presented a positive guidance for the current fiscal year. The company announced the termination of a long-term partnership with FIFA and the rebranding of its own football simulator.Walt Disney (DIS: -2.29%) did not meet expectations in terms of revenue and profit, although both key areas of the issuer's business (media services and theme parks) showed strong growth in operating profit, and the number of new subscribers of Disney+ streaming exceeded analysts' forecasts.Toyota Motor (TM: -5.64%) reported for the first quarter better than the preliminary estimates of experts. However, despite stable annual sales, management forecasts a 20% decrease in operating profit this year due to rising logistics and raw materials costs.We expectBy the end of April, annual consumer inflation in the United States slowed from 8.5% to 8.3%, but the indicator exceeded economists' expectations. The growth of the base CPI also turned out to be higher than the value predicted by experts, amounting to 6.2%, due to the increase in air ticket prices on the eve of the tourist season and the rise in fuel prices. Nevertheless, there is already a gradual stabilization of supplies due to the unloading of ports. The April inflation data at the moment increased investors' concern about a possible tightening of the Fed's rhetoric and provoked renewed speculation about an increase in the discount rate by 75 basis points (bp), as the regulator is forced to resist persistently high inflation.However, these fears were not justified: even the most determined member of the FOMC, the president of the St. Louis Fed, James Bullard, said on May 11 that, despite high inflation in April, a half-percent rate hike at least at the next two meetings is the main guideline and a broader change is not required. At the same time, the official still adheres to the thesis that it is preferable to raise the rate to 3.5% by the end of the year. The head of the Atlanta Fed, Rafael Bostic, also supports expanding the target range of the rate, but to a neutral 2-2.5%, noting that at the moment there is a surplus of funds in the amount of about $ 1-2 trillion on the Fed's balance sheet. After the comments of the representatives of the Federal Reserve, investors weakened expectations about the strengthening of the "hawkish" rhetoric of the regulator: apparently, officials were able to convince the market that the regulator intends to maintain the current rate of change in the base rate by 50 bp. According to the dynamics of futures, the probability of such a development is 97%.The stock exchanges of the Asia-Pacific region closed the trading session on May 12 with a drop in the main indices. Japan's Nikkei adjusted by 1.77%, China's CSI 300 lost 0.44%, Hong Kong's Hang Seng dropped by 2.24%. EuroStoxx 50 has been losing 2.59% since the opening of trading.The price of Brent crude oil futures rose to $107.5 per barrel. Gold is trading at $1853 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3900-3980 points.MacrostatisticsThe US producer price index for April will be published today. The consensus forecast assumes that the rate of industrial inflation will slow down to 0.5% mom and 10.7% YoY after 1.4% mom and 11.2% YoY by the end of March.Sentiment IndexThe sentiment index dropped 2 points to 34.Technical pictureAt the beginning of trading on May 11, the S&P 500 attempted to grow by almost 1%, but failed to gain a foothold above the psychologically significant 4,000 points. Taking into account the technical oversold stocks, a short-term rebound is possible, but the RSI and MACD confirm the continuation of the "bearish" trend. In the context of a gradual tightening of global financial conditions, the medium-term trend of market movement remains downward. The closest support is the level of 3850-3900 ...

The coronavirus pandemic that struck the world in 2020 illustrated the reality of the marketplace. Companies that were able to demonstrate their strength even in the face of global change immediately emerged as leaders.Investors planning to invest in long-term investment assets to increase their returns over time are opting for companies that continue to expand and pay dividends to shareholders which can then be used as an investment vehicle.Analysts, having monitored the market, have compiled a list of organisations whose businesses have proved to be as sustainable as possible, hence we can now tell you which stocks to invest in in 2021. These are the companies that experts believe will be the most promising over the next 10 years.StarbucksStarbucks (SBUX) is the best-known coffee brand, with a chain of locations almost all over the world. In January 2021, there were 33,000 shops on the planet, and the company plans to open another 22,000 coffee shops by 2030, after which it will boast the largest international coffee and coffee drinks chain.In addition to its impressive organisational scale, Starbucks has been remarkably stable. Since the company first went public 30 years ago, Starbucks has experienced more than one crisis, but this has had no effect on its market position, profitability or sales numbers, which have been growing for 27 years!Note that only 3 years in the company's 30-year history have not been very good! Even in the "fateful" for many such institutions in 2020, despite the introduction of quarantines and a reduction in customer numbers, the company was able to go "in the plus" - the average purchase check went up slightly, and the coffee shop began working "to take away".An additional "plus" for the company's stock is the fact that dividends are rising in value, but Starbucks continues to pay them out to shareholders. For example, Starbucks shares are up 33.26% in 6 months.This shows the popularity of Starbucks coffee, the company's skillful management, and the opportunity to increase your income by investing in Starbucks stock.Read more: Dividends: what is it and how to get themPayPalPayPal Holdings (PYPL for short) is a successful international payment corporation that most people in Russia are likely to have used. The company has only benefited from the coronavirus, or more precisely, from the transition of private consumers and businesses from cash payments to a cashless payment system.In 2015. PayPal evolved into a separate company whose total payment volume increased 3.5 times in 5 years. In January 2021, that figure stood at $936 billion and PayPal can compete on an equal footing with international brands such as Visa and Mastercard. The money earned by the company is invested in its own shares - management buys them back from individuals to add value for investors.Experts believe the e-transaction system is one of the market leaders in digital payments, but it is not the limit - PayPal's management has officially said it plans to triple its payment volumes by 2025, launching new financial services and expanding its cryptocurrency service. It also plans to double the free cash flow indicator, which will open up new opportunities for investors.PayPal has not yet paid any dividends to its shareholders in 2021, investing all of its money in its growth, but by 2025 it will return $12bn to $16bn to its shareholders through a share buyback, which has seen a 147.6% increase in value in one year alone.The US retail giant has suffered in recent years from competition from Amazon, the biggest online retailer. Despite the challenges, the supermarket chain has managed to hold its own. Now Walmart is delighting investors with a rapid move in the right direction.The retailer's new business model successfully combines online and offline commerce. With a wide network of shops at its disposal, Walmart can use them as pick-up points. At the same time, each supermarket becomes a processing centre for online orders and a dispatch point for parcels.Another innovation that the retailer has tested is the Walmart+ subscription program. It is designed to capture the value of the retail giant's offerings for consumers.In addition to its traditional role as a retailer, Walmart is preparing to become a healthcare provider. Plans include creating a network of clinics that will be located in close proximity to existing supermarkets. Along with gas stations already operating next to shops, Walmart will focus on mixed-use spaces where consumers can buy goods and receive services.The market believes in the retail giant's new vision: the company's share price has risen by almost a quarter in the past 12 months. However, Walmart's growth momentum has lagged behind the market as a whole. However, the company's success demonstrates that it has not exhausted its potential.DisneyThe Walt Disney Company has become a textbook example of the main principle of success in the current era. The ability to change by quickly adapting to consumer demands and new realities has helped Disney to maintain its leading position in the film and entertainment industry.The Disney+ streaming service brought the company the lion's share of its revenue during the pandemic. The platform allows users to enjoy content created by industry giants such as:Disney;Marvel;LucasFilm;Pixar;20th Century Fox.After the closure of cinemas and theme parks, the streaming service continued to generate revenue for Disney. Its size even allowed the company to make up for the losses caused by the temporary shutdown of Disneyland. Before the pandemic, theme parks were Disney's main revenue stream.The entertainment giant recently released a report which revealed that the streaming service was able to attract more than 146 million paid subscribers. The company plans to increase this figure to 230-260 million by 2024, and to 300-350 million by global subscriptions. However, the current number of subscribers is also staggering: by comparison, streaming industry veteran Netflix boasts a figure of 195 million.Prospects for other lines of business should also inspire optimism in Disney's investors. Vaccination is gaining momentum around the world, which means the end of the epidemic is near. Once the restrictions are lifted, the company's films will return to the box office and the theme parks will be able to welcome guests again.AirbnbThe pandemic took a heavy toll on the accommodation rental platform. Despite this, Airbnb is well-positioned to make a comeback. The company offers services that are in high demand and trusted by its customers.During the first nine months of 2020, Airbnb suffered losses but managed to turn a profit in the last quarter. The platform had 54 million registered users in 2019. Analysts agree that this is not the limit for growth and ...