DIS On The Rise: Stock Gains Near 2%
At 11:10 AM EDT DIS reached $137.00.
And although it didn’t stay there, the end of the day saw Disney stock at 134.20; this movement, on a slow day for The Market, raised eyebrows.
Disney Stock Continues to Surprise
On a downbeat day on Wall Street, Disney shares posted a 2% gain after a resoundingly positive verdict on the company’s streaming progress by one media analyst.
The stock closed the day at $134.20 after earlier in the trading session flirting with its highest closing price in more than six months. Shares have poked above $135 a couple of times in recent weeks after mounting a comeback from a COVID-19 meltdown in February and March. The Nasdaq, S&P 500 and Dow Jones Industrial Average all fell between 2% and 4% on Tuesday, putting Disney’s upswing in starker relief.
“Disney is succeeding in the land-grab phase of direct-to-consumer,” Deutsche Bank analyst Bryan Kraft wrote in a note to clients. It “has the most clear path to successfully transitioning its general entertainment programming and content production businesses into a globally scaled, vertically integrated streaming entertainment leader.”
A Trend For Disney Stock?
We read something similar yesterday:
But today, Kraft — the analyst — explained that the important notes include:
“(a) higher pricing, (b) leveraging the Disney+ base to distribute the soon-to-be-launched Star branded streaming service, and (c) an inevitable shattering of today’s exclusive theatrical window… [which will] make room for new premium video-on-demand windows that enhance monetization of film studio output and add consumer utility to the Disney+ service.”
However, and again, the tea leaves were predicting the upswing.
DIS: Predictable Factors?
On September 5, John Bromels wrote for The Motley Fool:
Disney’s massive stable of media content and incredible brand appeal should help it bounce back quickly once the pandemic subsides. Of course, there’s no telling how long that will take, but long-term investors should take it in stride.
Okay. OK. I am picking up what they’re putting down – but am I a long-term investor (as opposed to a long-time enthusiast)? Only time will tell.