Source: PaxForex Premium Analytics Portal, Fundamental Insight
Walt Disney is experiencing a busy June, marked by a major theatrical release and enhanced theme park experiences.
Despite Disney shares dipping over the past two months, several catalysts could reignite investor optimism. The debut of new attractions in Japan and Florida coincides with the peak summer travel season. Additionally, a new movie is set to be the first of three major animated features Disney plans to release in theaters by the end of the year. Here's what to watch in the coming month.
Tokyo Disney, the only Disney resort not owned or significantly controlled by the company, will be unveiling Fantasy Springs, a $2 billion expansion at Disney TokyoSea. This new addition features attractions based on beloved franchises like Peter Pan, Frozen, and Tangled.
Although the resort is owned and operated by Japan's Oriental Land Company, Disney still benefits from royalties and licensing fees. The success of Tokyo Disney's two parks also boosts interest in Disney products and future projects. This arrangement allows Disney to profit from a $2 billion expansion it didn't fund, generating excitement for three iconic properties.
Disney has been strategically quiet at the box office since late last year, but it's beginning to make waves again. The momentum started last month with the release of "Kingdom of the Planet of the Apes," which has already garnered $140 million in domestic ticket sales and $338 million globally, marking the studio's biggest success since July of last year.
Disney has half a dozen potential blockbusters slated for release this year. The next major attraction is "Inside Out 2," hitting theaters next week. The original Pixar film earned $357 million domestically and $858 million worldwide in 2015, and ticket prices have significantly increased since then.
However, there are reasons for caution. Fans are aware that they can stream the movie on Disney+ a few months after its theatrical release, which might limit ticket sales and repeat viewings. Despite this, with rival studios dominating the top animated films in 2022 and 2023, Disney is poised to reclaim its position as the industry leader. If "Inside Out 2" doesn’t succeed, the upcoming "Moana" and "Lion King" films for the holiday season are expected to deliver strong numbers.
In addition to cinematic releases, Disney is enhancing its theme park experiences. This month, Tiana's Bayou Adventure is set to open at Disney World's Magic Kingdom, replacing the Splash Mountain log flume ride. This revamped attraction features new scenes and a storyline based on "The Princess and the Frog."
Disney World's Magic Kingdom is also introducing a refreshed version of the Country Bear Jamboree, featuring a new show where the animatronic bears perform Disney songs reimagined with a country music twist. These new attractions offer guests ways to cool down during the hot summer months, following the introduction of the Tron Lightcycle Run roller coaster last spring.
Further exciting developments are anticipated across Disney’s extensive theme park empire. The company is expected to announce new additions at its D23 fan conference in California in two months.
As long as the price is below 107.00, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 102.97
- Take Profit 1: 100.00
- Take Profit 2: 97.00
Alternative scenario:
If the level of 107.00 is broken-out , follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 107.00
- Take Profit 1: 110.00
- Take Profit 2: 111.00
