To The Moon

$Walt Disney(DIS)$ will be holding its annual shareholder meeting on Wednesday (03 April). Market would be looking out closely for updates on the proxy battle battle between the company and activist investors. Investors are also looking for details on the parks segment and its streaming strategy.

Price Targets Increased Ahead Of Meeting

BOA and UBS has both increased their price target for Disney given the belief of momentum on strategic priorities for Disney and the robust theme park demand.

I would think that Disney's ability to meet and exceed targets is another factor why the price targets is increased as well. As of last fiscal first quarter reporting, Disney has provided better-than-expected earnings and they have also announced several projects in February.

So we may want to ask ourselves whether the meeting would cause some impact on the stock price performance. I think we should look at Disney’s Park Segment. This should be one of the contributor for the strong earnings expected for the second quarter.

How Disney Make Money

Disney have 4 major revenue segment, and the park segment would be another revenue stream, but we need to know also is whether Disney would be able to support this new setup.

If we were to look at Disney liabilities and its short term assets, we can find out.

Disney Long and Short Term Assets Situation

Disney's short term assets ($26.0B) do not cover its short term liabilities ($31.0B). This applies to its Long Term Liabilities as well Disney's short term assets ($26.0B) do not cover its long term liabilities ($61.2B).

But if we look at the long term assets, Disney is pretty comfortable to cover its liabilities.

Disney Technical Analysis For Potential Trade

Looking at Disney intraday chart, Disney does present some positivity on the investors buying sentiment and also MACD, we are seeing that Disney might be coming out from consolidation to trend higher.

But we will need to watch how Disney is faring in the streaming space as it combines Disney+ and Hulu, and works on a sports package as ESPN partners with Warner Bros. $Warner Bros. Discovery(WBD)$ ) and Fox (FOXA).

Disney's direct-to-consumer segment is "the biggest source of near term upside". We should be seeing Disney moving higher after this meeting.

Summary

Disney is still a potential stock to look at because their content segment should turn profitable with incrementally higher licensing revenues and improved box office. With their new innovation and project, we could see more positive revenue coming.

Appreciate if you could share your thoughts in the comment section whether you think Disney could move higher prior to its Wednesday meeting and after?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.