Kay Koplovitz, founder and former CEO of USA networks, joins 'Closing Bell' to talk about Disney's subscription numbers and streaming. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Disney shares plummeted Thursday, falling 7% in their worst session since June 2020, after the media giant reported a subscriber growth slowdown in its streaming service.
The stock was the worst performer in the Dow Jones Industrial Average. Its losses pulled it into a bear market, having fallen 20% from a March peak.
But traders are split on whether this latest sell-off spells opportunity or not. Fairlead Strategies founder Katie Stockton, for example, says Thursday’s drop looks like a “shakeout.” She also sees it as a chance to buy at a discount.
“A shakeout is essentially a false breakdown and this is actually kind of an exciting move for me to see from Disney because it’s been such a laggard since March,” Stockton told CNBC’s “Trading Nation” on Thursday. “Into this gap down we have obviously emotionally-charged selling, it could be a selling climax of sorts especially with the volume running heavy.”
“There is support on the chart between about $153 and $155 and the next resistance is up around the 200-day moving average. So I think it’s somewhat compelling, albeit not exactly risk-free, to add into this kind of weakness,” she said.
Disney closed Thursday just above $162. It would need to rally around 11% to reach Stockton’s resistance target, its 200-day moving average of $180.
Piper Sandler chief market technician Craig Johnson is not a buyer yet, however. He sees the potential for more weakness before the selling is over.
“Mickey Mouse never goes out of style, but in terms of the chart here today, I want to wait for them to go on clearance a little bit further,” Johnson said during the same interview.
“It’s in a well-defined downtrend in our work,” he said. “I think we will have an opportunity to buy it lower than where it is here in the next couple of weeks or months.”
In an email to CNBC, he further elaborated that a retest of the lower-end of a downward price channel at $158 is possible. It traded as low as $158.33 per share Thursday.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBChttps://www.cnbc.com/select/best-credit-cards/