Source: PaxForex Premium Analytics Portal, Fundamental Insight
The year 2023 proved forgettable for Walt Disney investors as the leading entertainment stock managed only a 4% gain, falling significantly short of the market's 24% ascent. Looking ahead to 2024, Disney aims to set the right tone in January, with new content on Disney+, changes to its theme park strategy, and potential stock-moving events. Here's a closer look at key developments for Disney shareholders in the upcoming month.
January 9
As part of its turnaround strategy, Disney emphasizes cost cuts, aiming to reduce billions from annual content investments. Viewers are urged to savor prominent Disney+ releases due to this shift.
A notable addition to Disney+ is the upcoming Marvel TV series, "Echo," set to debut next week. The character, introduced in 2021's Hawkeye, weaves her storyline into the Daredevil franchise. Unlike other Marvel series, Echo's episodes won't be released weekly; all five will be available on January 9.
Beyond streaming, changes are in store for Disney's flagship resort. Starting January 9, the company discontinues the requirement for theme park reservations for guests with day tickets at Disney World. This policy, in place since the summer of 2020, aimed to manage crowd levels and prioritize higher-spending guests. While unpopular with visitors, the system proved financially beneficial for Disney, contributing to a 40% increase in daily spending per guest at gated attractions since pre-pandemic levels.
Additionally, dining plans for visitors with on-site resort stays will return on January 9. Notably, restrictions on park-hopping, limited to the early afternoon, will be completely lifted for all guests with multipark access. The changes signify positive developments in the ongoing recovery of Disney World.
January 10
Disney resumes semiannual distributions, marking a significant financial move. The House of Mouse declared this decision in November, with the first dividend in four years going ex-dividend on Dec. 11 and set to be paid out on Jan. 10. While the payout of $0.30 per share every six months may not be a headline-grabber for income investors, offering a yield just below 0.7%, it provides a means to reward patient investors during a period of sluggish growth. Some debate the wisdom of Disney reintroducing dividends, arguing it might conflict with cost-cutting efforts, but for others, it represents a positive development.
January 12
A spotlight falls on the Disney+ streaming service as Bluey emerges as an unexpected hit in terms of time spent streaming. Despite not featuring iconic Disney characters, this animated series for preschoolers about a family of talking dogs holds the top spot in viewer engagement. With short yet replayable episodes, the new season of Bluey, consisting of 10 installments, debuts on Disney+ on the upcoming Friday.
In a cinematic twist, Disney is revisiting three animated features originally released exclusively on its streaming service during the pandemic – Soul, Turning Red, and Luca. Commencing with Soul on January 12, these films will now have theatrical runs, offering a red carpet moment for moviegoers. While not expected to draw massive crowds, this strategic move aims to extend the reach of these franchises if box office receipts can offset distribution costs.
Simultaneously, the Epcot International Festival of the Arts returns to Disney World on January 12, offering a diverse array of international food items and providing a platform for artists and designers to showcase their creative works. Festivals have become popular attractions, adding to the allure of the resort's expansive theme park.
As long as the price is above 86.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 90.24
- Take Profit 1: 95.00
- Take Profit 2: 100.00
Alternative scenario:
If the level of 86.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 86.00
- Take Profit 1: 82.00
- Take Profit 2: 80.00
