Disney could have revealed a little magic.
Before the long weekend, Disney presented its live-action blockbuster Mulan on its Disney + streaming platform. The film is available at a premium price months after its expected premiere in March. Investors are hoping for another streaming hit that will be similar to Hamilton's release earlier this summer.
Gina Sanchez, CEO of Chantico Global, says the Mouse House will take a very valuable step.
"Disney + has many legs," said Sanchez on CNBC's "Trading Nation" Friday. "Right now it's a shiny new toy and I think it will stay that way. I think this could be a very valuable step for Disney and also flex the muscles of their Disney + streaming channel."
Disney has steadily declined from its lows in March but is still down nearly 9% over the year. The company has been forced to temporarily close the doors of many of its parks due to the coronavirus pandemic, but Sanchez says that once things get back to normal, Djsney could outperform again.
"When you look at the things that are holding them back … the inability to open their parks, the challenges they face in sport," said Sanchez. "In the next six to twelve months, we're going to see some changes there that will be of great benefit to Disney. So, in fact, I would think that once we get back to a more normal situation, Disney could participate significantly more than the market."
Matt Maley, stock strategist at Miller Tabak, points out that despite the fact that stocks are lagging, you shouldn't count Disney.
"The stock actually didn't do that badly," said Maley in the same segment. "While it wasn't as aggressive in its rally as many other stocks, it still made a series of 'higher lows' and 'higher highs' in a nice, upwardly sloping trend channel."
Maley points out that Disney is reaching some overbought levels, which is why it is pulling back with the rest of the market.
"One of the good things that could happen in the next week or two is to see a gold cross with a 50-day moving average above its 200-day moving average. 2 of the last 3 events the stock has recovered dramatically after that, and the third time it didn't fall, it just didn't rise quite as dramatically. It was still up about 5% for the next month. Either way, it was a positive move. "