November 27-2019
Disney Stocks up after successful streaming debut

The Walt Disney Company has shared that their shares have risen about two per cent after its newly launched streaming service, Disney+, had been downloaded 15.5 million times in less than two weeks (as of Tuesday).

As per Apptopia, the $6.99-per-month service brought in about $5 million through in-app purchases within its first 13 days and that doesn’t include those who paid for the service through the Disney+ website. Its estimate was 3.2 app downloads, which was consistent with the usual mobile vs. living room dynamics. Even so, the number exceeded all estimates and powered the stock to a then-record $150 a share. It closed Tuesday’s trading day at $151.57, up more than one per cent for the day on above-average volume, pulling back in the final hour of the session along with the broader market. 

Just a day after the launch of Disney+ in the U.S., Canada and the Netherlands on 12 November, Disney announced to had drawn 10 million ‘sign-ups’ – a different number than actual paid subscribers.

Analysts are of the opinion that these numbers could point to a legitimate competitor for Netflix driven by a strong pricing, content, and bundling strategy. The service also enjoys some content advantages over Apple TV+, although Apple TV starts with a significant install base and strong pricing compared to many streaming competitors.

The news also comes as the company’s Frozen 2 grossed $127 million domestically and $223 million worldwide, making it the highest-grossing debut ever for any animated film.

From a technical standpoint, the relative strength index (RSI) remains overbought with a reading of 74.64, but the moving average convergence divergence (MACD) continues to trend higher. These indicators suggest that the stock could see some near-term consolidation before extending its move higher over the coming sessions.

Traders should watch for some consolidation above reaction support levels at around $150 over the coming sessions. If the stock breaks down from these levels, traders could see a move toward reaction lows of around $140 or the 50-day moving average at around $134.80. If the stock continues to break out, traders could see a move to fresh highs.