Disney stock price erupts to record highs as Disney+ excels

Shares of The Walt Disney Company (NYSE: DIS) erupted 13.6% on Friday after the company announced impressive results for the recent period, as well as numerous new features and pricing.  

Fundamental analysis: Impressive results

Disney said that its recently-launched Disney+ streaming platform now has 86.8 million subscribers, representing a gain of over 13 million new subscribers in less than two months. Across all platforms, Disney has 137 million subscribers. 

These numbers are expected to continue growing as Disney+ plans to expand its services to Eastern Europe, South Korea, Hong Kong and other markets. By 2024, the firm forecasts to have 230 million to 260 million Disney+ subscribers. 

“The tremendous success we’ve achieved across our unique portfolio of streaming services, with more than 137 million subscriptions worldwide, has bolstered our confidence in our acceleration toward a DTC-first business model,” said Bob Chapek, Chief Executive Officer, in a statement.

The aggressive campaign will see  programming expenses rise to $16 billion in 2024, Disney projects. In order to increase revenue, Disney is raising the subscription price of Disney+ by $1 in the U.S. to $7.99 per month to 8.99 euros for the European market, up from prior 6.99.

“It is clear our strategy has already positioned us as a leading global streaming service provider, and that is within just one year of launching Disney+,” said Christine McCarthy, CFO at Disney.

The entertainment giant also announced a wide range of new shows and series, including those from Marvel and Star Wars franchises, new live-action movies “Pinocchio” and “Peter Pan & Wendy”, and more.

Technical analysis: Shares soar to record highs

Disney share price surged 13.6% on Friday to reach fresh all-time highs at $179.45, meaning that Disney’s market capitalization more than doubled since the pandemic-driven selloff in March. 

The price action is now trading in an uncharted territory. Given the scale and pace of the recent bullish move, we are likely to see a pullback in the price action on profit-taking activities. Technically-speaking, the previous all-time high at $157.50 represents an initial support line. 

Summary

Disney stock price reached a new all-time high after Disney reported an impressive surge in the number of Disney+ subscribers, as well as a flurry of new content to its streaming options.