The Walt Disney Co.

Stock Trader
2023-08-09

Current trend

The stocks of one of the leaders of the global entertainment industry, The Walt Disney Co., are trading within the framework of a long-term downward trend, but in the last two weeks the decline has slowed down: the price has reached 87.50, which it cannot yet overcome.

The market is in a state of uncertainty before two key events: the publication of quarterly statements of the issuer and July data on inflation in the USA. According to the consensus forecast, earnings per share could be 0.99 dollars, which is 9.2% less than in the same period last year (1.09 dollars). Revenue on an annualized basis is likely to reach 22.53B dollars, an increase of 4.8%. Nevertheless, analysts fear a possible reduction in the number of subscribers to the Disney+ service by 1.7M people amid continuing pressure on American households due to the rising cost of living.

On Thursday, the stock market expects the publication of July inflation data, which may prove decisive when making decisions by the US Fed on monetary policy. According to forecasts, the consumer price index on an annualized basis may increase from 3.0% to 3.3%, and the base indicator may slightly adjust from 4.8% to 4.7%. Under these conditions, the regulator may well go for a new increase in the interest rate, which will put additional pressure on consumer prices, however, if the pace of the index, contrary to experts' expectations, slows down significantly, the stock market will receive support.  

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