Millennial investors and their older peers are split on Disney ahead of earnings

  • Disney is expected to report earnings of $US1.16 per share Thursday afternoon.
  • Millennials on the trading app Robinhood seem to be more bullish on the stock than older Wall Street investors.

Disney CEO Bob Iger and his team will have plenty of questions to answer on the company’s earnings call Thursday.

The 94-year-old company has announced plans to compete in the digital future with a standalone streaming service, but has yet to release many details for its rollout. Additionally, CNBC reported this week that Disney has been in talks to buy most of 21st Century Fox. Both of these, as well as questions around ESPN’s recent struggles, will be on investors minds Thursday afternoon.

Ahead of Disney’s earnings release, Wall Street remains fairly bullish on the stock, giving Disney an average price target of $US110.76 — 9% above Wednesday’s closing price.

Millennials on the trading app Robinhood, on the other hand, appear to be even more optimistic.

“Younger investors have a more bullish sentiment leading into the earnings report than those over the age of 30,” Robinhood data engineer Arpan Shah told Business Insider. “Millennials’ buy-to-sell ratio is 1.1x where those older than 30 have a 0.8x buy to sell ratio.”

Disney is the 15th most held stock on the app. Netflix, a major competitor, is number 12.

Thursday’s earnings report will give more clarity to investors about any revenue hit Disney will take by yanking its movies and shows from Netflix.

Wall Street expects Disney to report adjusted earnings of $US1.16 per share on $US13.32 billion in revenue, according to data from Bloomberg.

Robinhood does note, however, that there has been a “notable shift” among its long investors ahead of Thursday’s earnings report. “The buy/sell ratio leading up to earnings is 0.86, this ratio was 1.3 during their last earnings report,” said Arpan, indicating that users of the app are more bearish on Disney than they were last quarter. Arpan noted, “the stock price has not moved much between the two earnings.”

Ahead of earnings, 17 analysts surveyed by Bloomberg have buy ratings on the stock, 12 rate it as hold, and two say sell.

Shares of Disney are down 4.57% so far this year.

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