Disney (DIS, $111.70) reports impressive growth in the online streaming market
Disney’s latest fiscal quarter report confirms forecast-beating earnings per share ($1.84 per share versus an estimate of $1.55 per share) and revenue ($15.30 billion versus $15.14 billion expected). Revenue in Disney's media networks business, which includes ESPN, rose 7% to $5.92 billion in the first quarter, compared to the year-earlier period, while its parks business was up 5% to $6.82 billion.
This impressive outcome may be attributed to Disney’s increased sales in media networks like the ESPN+, which has doubled its subscriber count in the last five months to stand at 2 million paid subscribers, as well as its theme parks businesses.
The company’s CEO reiterated that Disney’s foray into online streaming services amid growing competition from streaming giants like Netflix (NFLX) remains their top priority, as they will continue to strengthen their direct-to-customers offerings.
The number of consumers preferring streaming services at a cheap cost to traditional cable packages is increasing. Disney must have figured that this is the entertainment future and so besides ESPN+, it has also planned the launch of Disney+ later in 2019 that will stream its movies and original programming.
But direct-to-customers offerings are risky, as profit is hard to churn due the indispensable high content and technology of the service, which will come at a steep cost, but still needs to be sold cheaper than cable networks. In fact, Disney expects that these investments may negatively impact the segment's y-o-y operating income by $200 million in the second quarter.
On a brighter side, the company is expecting its pending acquisition of $71.3 billion worth assets from Twenty-First Century Fox to augment its own streaming services.
DIS in downward trend: 10-day moving average moved below 50-day moving average on August 07, 2025
The 10-day moving average for DIS crossed bearishly below the 50-day moving average on August 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 53 cases where DIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DIS turned negative on September 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DIS's RSI Oscillator exited the oversold zone, of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 177 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DIS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.905) is normal, around the industry mean (19.106). P/E Ratio (18.122) is within average values for comparable stocks, (81.837). Projected Growth (PEG Ratio) (0.909) is also within normal values, averaging (5.159). Dividend Yield (0.009) settles around the average of (0.039) among similar stocks. P/S Ratio (2.218) is also within normal values, averaging (48.345).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment
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