Disney stock up on Disney+ changes and earnings despite subscriber decline

By Camilo Botia, CSC?

Disney's stock experienced a 5% increase during Thursday's trading session following its announcement of changes to its ad-free Disney+ subscription plans and the release of its financial results for the fiscal third quarter.

Disney saw a 4.9% rise and emerged as the Dow's top performer after revealing plans for an upcoming price hike on its ad-free Disney+ subscriptions. In the latter part of Wednesday, the media giant also disclosed its fiscal third-quarter earnings per share, which surpassed expectations. Nonetheless, the company faced a decline in subscribers over the past three months, with the most recent quarter showing 146.1 million Disney+ subscribers, reflecting a 7.4% decrease.

In light of the high costs of corporate restructuring, investors anticipate the company will enhance its profitability by raising prices on nearly all of its streaming services.

According to the chart, we can observe how Disney's stock has reached its highest price since mid-June of this year. Since the beginning of February, the stock has fallen by over 22%, maintaining a sideways movement since May 11, 2023, between the support at $84.15 and the lower boundary of the gap presented between May 10 and 11 at $95.11, which serves as its nearest resistance. Additionally, the level of $85.30 serves as its closest support. With the ongoing cost restructuring at Disney and the announcement of subscription price increases for Disney+, the stock could continue its upward momentum and eventually reach $95.11. This value is close to coinciding with the 200-day moving average at $95.71.

However, the ADX indicator at the bottom of the chart shows a value of 14.93, indicating that there is still no clear trend in the market. As a result, it could continue trading within its sideways range.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

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