Disney’s behavior is very interesting and has been outperforming the American market since the end of January. The earnings release for the first quarter of 2022 confirmed this trend on Wall Street. In the words of CEO Bob Chapek “we had a very strong start to the fiscal year, with a significant increase in earnings per share, record revenue and record operating income at our national parks and resorts. We also launched a new franchise with Encanto, and saw a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney + subscribers added in the first quarter.” This trend is, therefore, opposite to that of Netflix on subscribers.

Walt Disney, after the highs of $202, has seen a rather physiological corrective phase that has brought prices back to the $130 area. From here the stock started a strong rebound, the quality of which was also confirmed by the very positive accounts published on Wednesday 9 February. The key level for Disney is at $160. The break at the end of this level, especially if accompanied by volatility, should allow the stock to return to at least $180. However, given the growing volatility on the American market, it is better to wait for the break of $160 to acquire the stock. Early entries could be very risky.

We recommend going LONG on the action at the closing break of $160 by buying the Leverage Shares 2x Walt Disney ETP (ISIN: XS2335553801), with a short-term target towards $180. Alert/stop loss should be below $155 (closing daily).