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The Walt Disney Company (NYSE; ticker: DIS) was established on 16 October 1923, when Walt Disney entered a contract with M.J. Winkler to produce the Alice Comedies.
Disney is a global media and entertainment industry leader, with a market capitalisation of US$170.86 billion. Home to renowned film production studios such as Pixar, Marvel, and Lucas Film, the company expanded through major acquisitions, including those of ABC, ESPN, and 21st Century Fox. Disney is also famous for its theme parks and resorts – Disneyland and Walt Disney World – which attract millions of visitors annually, as well as the Disney Cruise Line and Adventures by Disney Travel Services.
A Contract for Difference (CFD) is a derivative product that enables traders and investors to speculate on the underlying price movements of global markets, including Forex, Commodities, Bonds, Stock Indices, ETFs (Exchange-Traded Funds), and Digital Currencies.
CFDs are legal agreements/contracts settled in cash and represent the difference between a trade’s opening and closing prices consisting of two parties: a buyer and a seller. For example, Trader A decides to go long (buy), while Trader B enters short (sell). Assuming the underlying asset's value increases (decreases), Trader A (Trader B) will pay the difference between the opening and closing prices to Trader B (Trader A).
CFD transactions are also leveraged, allowing investors to open positions greater than their available account equity through what is referred to as margin. By trading on margin, an investor can gain full exposure using only a small percentage of the position’s investment value. Trading with FP Markets means your initial margin requirement for Walt Disney Share CFDs is 20%. If DIS shares are trading at US$93.95, buying 100 company shares would mean an initial investment value of US$9,395. However, trading on CFDs using margin, you can open an equivalent position of 100 Walt Disney shares for US$1,876 (US$9,395 * 0.2).
To trade DIS Share CFDs, you must create a live account by visiting the FP Markets website and clicking the 'Open Live' button at the top right corner.
1. Download your Trading Platform
Once your registration is complete, you will receive an email with your login details. You can use these credentials to log in to the Client Portal and download the trading platform of your choice. With FP Markets, you can trade on a wide selection of platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView.
MT5 is a popular option among traders investing in Share CFDs.
2. Find the Walt Disney Ticker
Locate the DIS ticker on MT5's Market Watch (Ctrl+M) tab by entering ‘DIS’ in the ‘click to add’ space; this creates an additional row to accommodate the Walt Disney stock. Drag and drop the DIS ticker to the chart’s interface to access real-time price updates. The price chart will open as shown below. Once done, you can alter its properties to suit your trading preferences.
3. Place the Buy or Sell Order
Assuming you’ve researched the stock and identified a possible investment opportunity, you can enter buy/sell orders through the order window (F9). Enter the order type, volume, stop-loss, and take-profit values in the required fields and press the buy/sell button to execute the trade.
One-Click Trading (Alt+T) is another way to buy and sell a stock CFD in MT5. Although One-Click Trading is renowned for its rapid trade placement, you can only set stop-loss and take-profit orders once the trade is executed in the trading terminal (Ctrl+T).
According to the company’s Q3 24 Earnings Report, revenue increased to $23.2 billion, up from $22.3 billion year over year. Although the experiences segment saw a slight revenue increase of 2%, its operating income declined by 3%, highlighting some challenges in this area.
However, analysts remain optimistic about the stock, with a 12-month average price target of $117.65. With a forward PE (price-to-earnings) ratio of 18.9 (at the time of writing), experts see a 23% growth potential.
Goldman Sachs reaffirmed its Buy rating on DIS with a price target of US$120.00 and anticipates that the media house will exceed EPS expectations for Q4 24, fuelled by solid performance in its Direct-to-Consumer segment.
The company’s CEO, Robert A. Iger, noted: ‘Our performance in Q3 demonstrates the progress we’ve made against our four strategic priorities across our creative studios, streaming, sports, and Experiences businesses. This was a strong quarter for Disney, driven by excellent results in our entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time, which was a quarter ahead of our previous guidance. Despite softer third-quarter performance in our Experiences segment, adjusted EPS for the company was up 35%, and with our complementary and balanced portfolio of businesses, we are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets’.
Currently, Disney holds a Rank 3 on Zacks, indicating a 'hold' (ranks ranging from #1 [strong buy] to #5 [stronghold]).
Since June 2022, the DIS stock has largely been rangebound, with limits between US$124 and US$82.00. This follows the record high registered at US$203.00 in early 2021.
As evident from the daily chart, buyers assumed control of range support in August and remained dominant. This indicates a shift in momentum and a positive outlook. This could lead investors to look for dip-buying opportunities, ultimately targeting range support. However, the caveat is that before forming the aforementioned range, the stock was entrenched in a downtrend which could eventually resume should the stock breakout lower.
Physical shares are one alternative to trading CFDs. When you buy physical shares in Disney, you become a shareholder in the company and your returns will depend on the company's performance. If the company performs well, your share price will go up, ultimately increasing your return on investment. At the same time, underperformance can lead to lower share prices and in turn negatively impact your investment. Becoming a shareholder sometimes also involves voting rights and dividend incomes.
Futures and options are leveraged derivative products that allow investors to buy and sell Walt Disney shares at a pre-decided date and price. In a futures contract, the buyer is obligated to buy while the seller commits to sell. On the other hand, options contracts grant investors the right but do not form an obligation to buy or sell the underlying asset.
ETFs are investment funds that are freely traded on a stock exchange and comprise a collection of assets. ETFs are traded like regular stocks and are often utilised to diversify portfolios and mitigate risks. However, while an ETF may list a stock such as DIS, the stock’s exact price movements will not be mirrored.
1. Does Walt Disney pay a dividend?
Yes, Walt Disney pays dividends. At present, the company offers a quarterly dividend yield of US$0.19.
2. What are the major differences between CFDs and physical shares?
The key differences between CFDs and physical shares involve ownership and leverage. CFDs are based on the share price of an underlying asset and do not involve ownership, whereas with physical shares, the investor is also a partial owner of the company. Additionally, CFDs provide higher leverage compared to physical shares.
3. Can I trade Walt Disney on MT4 or MT5?
With FP Markets, Walt Disney can be traded via CFDs on MT5 and cTrader.
4. What hours can I trade Walt Disney?
As of writing, you can trade Walt Disney between 16:30 and 23:00 GMT+3 (Monday to Friday).
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