Does Disney's Streaming-Fueled Rise Partying? By Investing.com

By Charley Blaine

Investing.com – Walt Disney reached a new high on Monday. Up 1.6% at 14:28 ET (18:29 GMT), it seems to be moving towards a closing record as well.

Wall Street is divided on the growing number of Disney (NYSE 🙂 shares that will increase, even with the potential of the company's Disney + streaming video service, which is expected to start in November.

Eighteen of the 23 analysts monitored by Investing.com award a buy-to-action rating, and only five give it a neutral rating. BTIG analyst, Richard Greenfield, passed his sales note to neutral on Monday. Meanwhile, the consensus 12-month benchmark is $ 131.27, down from Monday's price.

The title may be up 20% this year, making it the seventh best of the 30 titles, but the gain was 92% this month and 65% last week.

Most technical analysis of the stock say that Disney is a purchase. But momentum indicators suggest that Friday's 10.8% hike was too fast.

The 14-day relative strength index was 86 Monday and above 75 is a sell signal.

The big rise of Disney in April seems to rest on the long-term promise of Disney +. It will feature many shows, classic Disney movies and programs, the Marvel and Star Wars universes and content acquired in the recent contract with Fox, as well as a new series of original programs.

Disney plans to offer low rates for the service, believing that customer satisfaction will be sufficient so that subscribers are not put off by future price increases. That's what the Netflix video services (NASDAQ 🙂 and Amazon.com (NASDAQ 🙂 have shown.

His reported income was somewhat static. According to analyst estimates followed by Investing.com, earnings for the second quarter of the year would be $ 1.54 per share for revenues of just under $ 15 billion. The report is expected by May 8. A year ago, Disney reported $ 1.84 per share for a $ 14.1 billion turnover.

Meanwhile, Netflix investors are worried about Disney's effects on the streaming universe. As Disney reached a record close on Friday, Netflix lost 4.5% and is down 2% on Monday. It is also down nearly 19% from its 52-week high.