Disney to climb above $100?

Disney stock continues its rise as the company surprised investors with a 20% EPS growth expectation for this year.

The company expects its fiscal EPS to reach ~$4.60 for the year of 2024.

Investors are now anticipating the stock to potentially rise above $100 after last night’s better-than-expected earnings ($1.22 vs $0.99).

New initiatives to potentially drive the company forward are:

• An announced partnership with the Fortnight creator – Epic Games. As part of the deal, Disney will acquire a $1.5 billion stake in the game maker, aiming to expand its universe into the gaming space
   
• An expected launch of the new sports streaming service in partnership with Warner Bros., Fox. and TNT

However, the company is still faces significant challenges in its streaming and linear TV business, as well as weaker growth in parks segment.  

 

From the technical perspective …

• Disnay trading above the 21,50, 100 and 200-period SMAs may indicate a strong bullish trend
   
• The psychologically important $100 level may be the next major target for the Disney bulls in the near future
   
• To the downside, a round number at $95 may act as a key support level
   
• The relative strength Index’s (RSI) positioning at 66.76 (>70 – overbought, <30 – oversold) in a current uptrend may indicate a continued buying pressure.