Disney Stock: Don’t Count “DIS” Out?
Don’t Dis The DIS: Is The Walt Disney Company Poised For Stock Growth?
This one warmed the heart of me and my 11 shares of “DIS’ – this past weekend, CNBC posted: “Mulan debut allows Disney to ‘flex’ its muscle, trader says. Here’s why”.
DIS Ready to FLX?
Michael Affine posted:
“Disney+ has a lot of legs,” said Sanchez on CNBC’s “Trading Nation” on Friday. “Right now it’s a new shiny toy, and I think it’s going to remain that way. … I think this could be a very valuable move for Disney, and also to flex the muscle of their Disney+ streaming channel.”
Disney has made a steady climb back from its March lows but is still down nearly 9% for the year. The company was forced to shut the doors temporarily on many of its parks due to the Coronavirus pandemic, but Sanchez says that once things get back to normal, Disney could outperform again.
“If you look at the things holding them back … the inability to open their parks, the challenges they have around sports,” said Sanchez. “Within the next six to12 months, we’re going to see some changes there that are going to be very beneficial to Disney, so I would actually think that as soon as we get back to a more normal situation, Disney could participate significantly more than the market.”
Disney+ Already A+ For Investors?
Now, we have the benefit of hindsight and the knowledge that Mulan has had an uneven reception by audiences:
However, Affigne added:
Matt Maley, equity strategist at Miller Tabak, points out that although the stock is lagging, you shouldn’t count Disney out.
“The stock actually hasn’t been acting all that badly,” Maley said during the same segment. “Even though it hasn’t been as aggressive in its rally as a lot of other stocks, it has still been making a series of “higher lows” and “higher highs” in a nice upward sloping trend channel.”
DIS: But… There’s Always A “But”
Meanwhile, as good as Labor Day Weekend was for the theme parks in Florida, today The Motley Fool said to stay calm:
There’s also still no sign that the industry isn’t retreating. Many employees have been furloughed since reopening. Several on-site hotels at Disney World and Universal Orlando remain closed, a strong indication that it’s locals — who spend far less on a day at the park than out-of-towners — at the parks… However, the appetite for theme park escapism is still alive — and for now that will have to be enough.
It will be VERY interesting to see if DIS rebounds from a -1.20 loss on Friday, September 4.