DIS Disney in a Long-Term Correction. What's next?
DIS (The Walt Disney Company) is an old favorite for many who have had it or have it in their long-term portfolios, especially with this stock's long-term history.
The last 10-20 years have been some of the best for Disney with Bob Iger at the helm and the successful M&A, Creative, Movie launches and much more (Star Wars, MARVEL, New acquisition of FOX properties and much more).
The upward momentum for Disney seemed like it would never end. That is, until the pandemic of 2020 proved that Disney was overexposed. Whether theme parks, movie release and launch delays and compromises, and ESPN sports covering nothing interesting for several months, the trifecta took hold and saw DIS take a 50% retracement off its high in just a few weeks.
DIS proved resilient. Having already invested in the future of digital with Disney+ and bringing in a new CEO Bob Chapek to lead the new chapter of Disney, there was a glimmer of hope for Disney.
Still, long-term market cycles (note my WEEKLY chart) don't recover overnight. Expect DIS to continue seeing volatility in this large consolidation pattern. One might unfortunately link the stock's performance directly to sentiment on the pandemic and any hopes for a vaccine and re-opening of the economy, especially entertainment venues and attractions which Disney is overly dependent on.
DIS is a risky stock in the short to mid-term but can be a fun stock to trade while raising money to save a few shares in your long-term investment portfolio.
The last 10-20 years have been some of the best for Disney with Bob Iger at the helm and the successful M&A, Creative, Movie launches and much more (Star Wars, MARVEL, New acquisition of FOX properties and much more).
The upward momentum for Disney seemed like it would never end. That is, until the pandemic of 2020 proved that Disney was overexposed. Whether theme parks, movie release and launch delays and compromises, and ESPN sports covering nothing interesting for several months, the trifecta took hold and saw DIS take a 50% retracement off its high in just a few weeks.
DIS proved resilient. Having already invested in the future of digital with Disney+ and bringing in a new CEO Bob Chapek to lead the new chapter of Disney, there was a glimmer of hope for Disney.
Still, long-term market cycles (note my WEEKLY chart) don't recover overnight. Expect DIS to continue seeing volatility in this large consolidation pattern. One might unfortunately link the stock's performance directly to sentiment on the pandemic and any hopes for a vaccine and re-opening of the economy, especially entertainment venues and attractions which Disney is overly dependent on.
DIS is a risky stock in the short to mid-term but can be a fun stock to trade while raising money to save a few shares in your long-term investment portfolio.