Is it possible to make money from movie releases by buying the studio's stock?
Wall-E is expected to be a big hit this weekend. Can I make a quick buck by loading up on Disney (DIS)?
Answers
269 points
stocktraderdan answered one year ago …
Verify your assumptions by reviewing (DIS) charts for any correlation between movie releases and price change. I would actually think that the stock price has already priced it any of the potential earning from the movie. If anything I would think that the stock might fall a little.
Don't trade on my assumptions though, I haven't done any research on (DIS). Do your homework on the stock before you buy it. Oh, there is no quick safe buck on wall street.
4085 points
EthanR answered one year ago …
It's hard to push a stock on a large company like Disney just because of one movie. Howeve, DIS has been about making money for a very long time, and has rewarded their shareholders nicely over time. I think right now the stock is heading lower. Looks like it just violated the trendline from February, and the MACD appears to be heading lower. If you can get DIS at a cheaper price, say around $29-30, then I think you can safely buy it for the long term. If it doesn't hold support there, the next support level would not be until 27.
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