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$DIS may have spiked up on earnings, but I don't think it is done quite yet. $DIS reported a net loss of $4.72B while EPS came in at 0.08, their first loss & lowest EPS since 2001 . So why has it gone up & why do I think it will keep going up???
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1) Revenue came in at $11.78B (a fraction of last year’s revenue).
Not including lost revenue, a factor contributing to their net loss is their payments still being made for their Fox merger.
The bright spot was news about their streaming platforms.
Not including lost revenue, a factor contributing to their net loss is their payments still being made for their Fox merger.
The bright spot was news about their streaming platforms.
2) Combined, Disney+, Hulu, and ESPN+ now have about 104.5M subscribers (60.5M, 35.5M, & 8.5M respectively)
$DIS also announced plans to create another streaming service that will focus on international markets
$DIS previously forecast Disney+ hitting 60-90M subscribers by 2024
$DIS also announced plans to create another streaming service that will focus on international markets
$DIS previously forecast Disney+ hitting 60-90M subscribers by 2024
3) The key takeaway from earnings was the subscriber numbers
The below graph from @CNBC helps to visualize just how many subscribers $NFLX has vs all the streaming offerings of $DIS
$NFLX reported revenue of $6.15B, giving them about half the revenue off twice the subscribers
The below graph from @CNBC helps to visualize just how many subscribers $NFLX has vs all the streaming offerings of $DIS
$NFLX reported revenue of $6.15B, giving them about half the revenue off twice the subscribers
4) $NFLX & $DIS have market cap's of $223.7B and $236.8B respectively.
The vast difference in revenue is a signal that the market cap and value for these companies are off.
The vast difference in revenue is a signal that the market cap and value for these companies are off.
5) Breaking down $DIS revenue highlights the potential growth that could be seen:
$6.5B for media networks (ie TV channels)
$3.97 for direct-to-consumer (streaming subscribers)
$1.74B for studio entertainment (55% decline)
$983M for parks (85% decline)
$6.5B for media networks (ie TV channels)
$3.97 for direct-to-consumer (streaming subscribers)
$1.74B for studio entertainment (55% decline)
$983M for parks (85% decline)
6) It may take some time for parks and studio revenue to return to pre-pandemic levels (park and theater re-openings will be key), but the growth that $DIS streaming offerings should bode well for the future growth of revenue and value of the company.
7) With every major studio (not including $SNE) offering their own streaming service, $NFLX will have a limited window to license shows/films from its competitors.
$DIS meanwhile has a library spanning over 80 years.
$DIS meanwhile has a library spanning over 80 years.
8) Below you can see a flat base formed (light blue lines) but a new level of resistance may be seen at $135 (yellow line)
Should $DIS hold in the $125-135 range in the near future, that will allow the 50-DMA to catch up to the 200-DMA & provide a golden cross (bullish)
Should $DIS hold in the $125-135 range in the near future, that will allow the 50-DMA to catch up to the 200-DMA & provide a golden cross (bullish)
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