Why Did $DIS Drop After Hours?


The stock that can’t seem to ever get out of it’s way is down after hours on news that it’s pulling it’s content off of the Netflix service [stock_quote symbol="NFLX"], launching a streaming service for it’s TV and movies, ESPN and sports entertainment.

Disney [stock_quote symbol="DIS"] was down more than 3% in after hours trading.

$DIS also reported earnings and announced the purchase of a majority stake in BAM Tech for 1.58 billion.

Is this a good time to add to long positions or activate a new long position? I almost always regret initiating a position in after-hours before the market has had a chance to digest the news. I’ll be waiting until tomorrow to see how the market views the news and whether it can find a floor around $100.

I had the opportunity to purchase the stock when it was below $100 and perhaps we can get the same opportunity this week. That being said, we’ll need to see some real future catalysts before pushing our chips in on the long side. Still like $DIS long term, but the short-term long may be difficult to pick here.

Can’t wait for the open tomorrow.

Good Trading, Phil