Shares of Walt Disney are Breaking Out

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Walt Disney (DIS) is on the move.

Granted, DIS hasn’t been the happiest place on earth to park cash over the last year. In fact, 2022 was the company’s worst year since 1974.

All on poor earnings, concerns consumers could cut down on discretionary spending, losses in its streaming segment, inflation, and fears of recession.  The good news is most of the negativity has been priced into the stock.  And it now appears things are improving.

Over the last few days, shares of DIS broke above prior resistance at $100.89.  From here, we’d like to see the DIS stock challenge resistance around $107.50.

For one, performance should improve in the new year.

Not only does Disney expect for streaming losses to bottom out, it also forecast break-even streaming results for 2024. Two, its theme park business is showing signs of improvement, thanks to returning demand.

Three, the return of the company’s former CEO Bob Iger – and activist investors such as Third Point’s Dan Loeb and Trian Partners’ Nelson Peltz – could help turn the company around. In addition, MoffettNathanson analyst Michael Nathanson also upgraded the DIS stock to outperform from market perform “to reflect our greater confidence in the company’s trajectory under the leadership of returning CEO Bob Iger,” as noted by The Hollywood Reporter.