Today, I want to share some thoughts on Disney as it approaches the $100 price level after earnings. Keep in mind, the market isn’t doing too well at the moment. As always, these are just my opinions, not recommendations to buy, sell, or trade.
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Disney’s Current Challenges
Disney has had its struggles, particularly with COVID-related closures in Asia affecting their theme parks. From my personal experience living in Florida, I can tell you Disney parks can be quite crowded, but now, with the pandemic, it’s even more challenging.
On the streaming front, Disney faces heavy competition from Netflix, Hulu, Apple TV, and others. Subscribing to multiple services is becoming more expensive for consumers, which adds another layer of difficulty for companies in this space.
Analyzing Disney’s Stock Performance
Right now, Disney is closing in on the $100 mark, and we’re seeing a lot of selling pressure. The stock has dropped 51% from its highs. This drop brings the stock back to 2016 levels, effectively wiping out six years of gains. Technically, we’re approaching support around $90, with a more critical level at $80.
My Take on Disney’s Stock
Personally, I’d be cautious. The market is still weak, and though we’re nearing oversold territory, I’d prefer to wait for a few green days before making any moves. It’s wise to nibble a little, spread out over a few months, instead of jumping in all at once.
