Last week's major event was the quarterly report on Walt Disney's performance in Q4, 2021. I am delighted to share with you the details of the quarter-end performance of one the most important global entertainment companies. Maksim Artyomov will provide a tech analysis on your side.

Walt Disney Report for Q4, Financial 2021

An American media conglomerate based in the entertainment industry, Walt Disney, reported on November 10th the financial performance of the quarter ended October 2, 2021. Wall Street analysts expected the company to produce important statistics.

Note that the company did increase its profit over July-September: In 2020, the net loss was $710 million.

Important report details

• Revenue -- $18.5 Billion, +26%. Forecast -- $18.8 Billion.
• Return on stock -- $0.37; +85% forecast -- $0.51
• Net Profit -- $160 Million, +122.5%

Slower growth of Disney+ audience

Investors were nervous because of the excess of Disney+ streaming subscriptions. Analysts openly admit that the business and its audience aren't growing as expected.

The number of streaming subscriptions paid for by the streaming service topped 118.1 million in Q4 financial 2021, which is 60% more than the previous year. Experts had predicted a 70% increase to 125.3 million users.

This is in comparison to Q3, financial 2021 results, which show a mere 2.1 million more users. Reuters reports that Netflix's paid subscribers increased by more than 4 million users in the same period.

Entertainment parks bring revenue

During the last quarter, quarantine measures were eliminated and Walt Disney Entertainment Parks opened their doors to visitors. Segment revenue grew by 99% to $5.5 billion in the quarter.

This sector has stopped losing money: the operational profit for Q4 financial 2021 was $640 million. The corporation had an operating loss of $945million a year ago.

What Walt Disney shares did to react to the quarterly report

The shares of Walt Disney (NYSE DIS) closed their trading session on November 11th with a drop of 7.07% to $162.11. Remember that the quotes of the media conglomerate have fallen for almost 10% over the past four trading days. The shares have fallen 2.3% since the start of the calendar year.

Maksim Artyomov, Tech Analysis of Walt Disney Shares

The company's quotations continued to decline after the trading session was opened with a gap. The financial report for Q4 was the key to the decline. The 200-days Moving Average has been broken. The price is now moving in a downward channel which could indicate future decline.

The horizontal support level at $155. is now the goal. The support line is being tested and the price may bounce off it. Walt Disney shares are likely to recover if the financial results improve. The goal is growth at $200

Walt Disney Forecasts

Bob Chapek, director-general of Disney+, announced that the company's paid subscribers will reach 260 million by 2024. This is due to new content creation and international expansion. Bob Chapek stated that the service will not lose its audience due to this growth.

Streaming service users will spend more if they are able to produce new content. Christine McCarthy's forecasts predict that losses will peak at the end of next year.

Summarising

The stocks fell by 7% in Q4 of the Walt Disney Report. The lame rise in paid subscribers eroded investor trust. Analysts had expected it to rise to 125.3 million users. However, the actual number was 118.1 million.

The company intends to significantly increase the production of new content in the near future. This will allow for a faster surplus of users, but net loss will increase.

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