Wall Street: DIS Shares Down $6.53 On Wednesday
Disney Stock Dips as The Market Drops…
Whoa! What a weird day on Wall Street.
And, bringing it down to our chosen topic, The Walt Disney Company, we see The Mouse lost 3.85% on Wednesday.
[R]ampant speculation fueled in part by Reddit retail investors pushed struggling stocks with heavy short interest higher yet again with GameStop and AMC Entertainment Holdings soaring as much as 156% and 310% higher, respectively. With all the speculation noise, a broader decline in markets, and investors waiting to hear notes from the Federal Open Market Committee’s (FOMC) January monetary policy decision Wednesday afternoon, it’s understandable to see Disney’s stock take a breather.
And, about the FED, The Wall Street Journal reported:
The Federal Reserve kept its easy money policies in place, saying that business activity has softened with the resurgence of Covid-19 cases, but hoping the rollout of vaccines will tame the pandemic and heal the economy.
Until then, the Fed is trying to boost economic activity as much as it can.
And that could bode well for Disney, of course.
Look For A Bounce?
Meanwhile, TheFool.com added:
Already Disney+ has performed well: The company’s streaming service ballooned from 73.7 million subscribers at the end of October to 86.8 million as of Dec. 2… Wednesday has been a little unusual for trading, but long-term investors in Disney should feel confident in the media company’s ability to rebound and drive growth after the pandemic.
Moreover, John Csiszar of Yahoo Finance also posted:
Disney has two major catalysts behind it that put it in a good position to rise in 2021. The first story attached to the stock is one of recovery… If you’re a believer in an economic recovery in 2021, Disney will benefit in a major way. The other main catalyst for Disney is the hugely successful launch of its Disney+ streaming service. Disney has already attracted nearly 87 million subscribers to the new service, which was enough to draw the praise of major rival Netflix’s CEO Reed Hastings.
Hear, hear. Let’s hope the bear is chased by the bull, tomorrow.