DIS Stock: Barron’s Calls It “Unstoppable…”
DIS is having a very good month. Can it continue into 2021?
It’s a nice gift for investors; the gift that keeps on giving, in a sense.
However, to hear the news from Barron’s — of all publications — just legitimizes the thoughtfulness of the “present.”
Still trading over $170, Disney Stock is becoming known as stock with its feet solidly in streaming, rather than one that depended merely on foot traffic in the parks for success.
About the surge in DIS stock, in an article entitled, “Disney Looks Unstoppable. How to Play the Stock Before Earnings,” Barron’s Steven M. Sears posted:
Disney stock, which was largely written off as a casualty of the Covid-19 pandemic, has since become one of the great success stories of a difficult year. Shares are trading near a 52-week high, and investors are excited about the future, especially as the pandemic seems poised to end in 2021 thanks to the vaccine rollout.
We were early to recognize that Disney likely had a “streaming strategy” before it became a central fact of the stock. Our clue was when the company unveiled Hamilton on its Disney+ streaming-video service. The release created nationwide excitement and did almost nothing to the stock. At the time, the stock was around $113, and shares were down 21% for the year.
Now, the stock is up 20% for the year, and investors cannot get enough of the company—especially after Disney recently revealed a tremendously bullish forecast.
And we’ve posted about this period of relative optimism for DIS stock several times over the past few weeks:
- Looking at Disney Stock: Should I Buy?
- Analyst Jim Cramer Says Don’t Sell Disney
- Disney Ends Week Emphatically On A Record High
However, beyond Wall Street, much of the news has been peripheral, with stories about Disney+ and it’s many projects stacking up.
And, as noted, that is certainly what is driving the uptick.
Streaming to the Top
As Barron’s explained:
The home of Mickey Mouse is now harnessing its world-renowned creativity on a centralized global distribution team to deliver and monetize content across Disney’s many platforms, including Disney+, Hulu, and ESPN+.
We’ve also noted this before – that the theme parks are no where near where they’ve been (or will be). So, we wonder, when Walt Disney World enters it’s 50th year, could investors get an even nicer birthday present?
Time will tell.