Disney stock price has rebounded hard this year, making it one of the best-performing companies in the Dow Jones. It surged to $118.56 on Monday and is hovering at its highest level since August 2022. It has risen by more than 50% from the lowest point in 2023.

Disney vs Peltz votes ahead

Disney has been one of the most embattled media and entertainment companies in the world even as its revenue has jumped from $69.6 billion in 2019 to over $88.8 billion in the last financial year.

Its profitability has crashed hard over the years. It made over $11 billion in 2019 to over $2.3 billion in the same period. 

The next important catalyst for the Disney stock price will be a vote by Disney shareholders about the company’s future. This vote is scheduled to happen in April.

On the one hand, there is Nelson Peltz, the billionaire founder of Elliot Management who has nominated a slate of potential directors. Disney also wants its current board to continue shepherding the ship.

Nelson Peltz is at a disadvantage considering that several influential people and companies are in Disney’s side. They include George Lucas, the founder of Lucas Films and Disney’s biggest shareholder, and the grandchildren of Walt Disney. Glass Lewis, one of the top proxy advisors has recommended a vote for Disney’s slate.

On the other hand, Nelson Peltz has been endorsed by ISS, another big proxy firm. I believe that Peltz would be a good addition to Disney’s board, which has transitioned the company from one of the most beloved American icons into one of the most divisive. Disney has also gone woke, a move that has alienated many potential customers.

Disney’s growth is not doing well. The most recent results showed that the number of its Hulu subscribers rose by 1.2 million from Q4 to Q1 while Disney+ users plunged by 1.3 million. This happened in the same period that Netflix added millions of users.

Disney stock price forecast

Turning to the weekly chart, we see that the DIS stock price has been in a strong bullish trend in the past few months. The stock has recently surged above the 50-week- and 200-week moving averages.

Disney has also surged above the 23.6% Fibonacci Retracement level, which is a positive sign. Oscillators like the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have all pointed upwards.

Therefore, the outlook for the stock is bullish, with the next point to watch being the 38.2% Fibonacci Retracement level at $125.97. 

By Crispus Kanyaru

With a keen eye for market trends and a knack for translating complex financial concepts into engaging narratives, Crispus has established himself as a trusted voice in the world of finance. His work has graced the pages of esteemed publications like Benzinga, Forbes, Invezz, and Banklesstimes, reaching a diverse audience eager to navigate the ever-evolving financial landscape. Crispus's journey began with a deep curiosity about the forces shaping the global economy. This natural inquisitiveness led them to pursue a degree in finance and CPIA, equipping them with a solid foundation in financial theory and analysis. But Crispus knew that knowledge alone wasn't enough. He craved to bridge the gap between dry data and real-world experiences, to make finance accessible and relatable to everyone.

Leave a Reply

Your email address will not be published. Required fields are marked *