Disney Shares Trading at an All-Time High
Shares of The Walt Disney Company ($DIS) are trading at an all-time high on Monday, February 8, 2021.
The bump in stock price comes on the heels of news today regarding legislation in California.
Theme Park Legislature
Two Assemblywomen came together to bring forth a bi-partisan bill that would allow for theme parks in California to open much earlier than anticipated.
Assemblywomen Sharon Quirk-Silva and Suzette Valladeres seek to allow large theme parks the ability to reopen once the county the park resides in reaches the ‘Orange Tier’ in COVID cases.
Currently, theme parks such as Disneyland would not be able to open unless the county the park resides in, Orange County in this case, reach the ‘Yellow Tier’ of COVID cases.
What This Could Mean
Disneyland has been closed since March of 2020. This has been devastating for the local economy and for the many individuals who worked in the theme parks.
MickeyBlog wrote a few months ago about the additional 1,800 layoffs Disneyland was moving forward with.
Recently, the theme park has been operating as a vaccine “supersite”, helping to accelerate the distribution of vaccines in California, where COVID-19 has greatly affected the entire state.
If the bi-partisan legislature that was mentioned above is passed, the theme parks would be able to open at a rate faster than what is currently allowed.
After this news became public, Disney shares began to trade 4.72% higher than market open.
The Walt Disney Company is outperforming the market today on a strong trading day thus far.
In the last twelve months, Disney ($DIS) reached an all-time low of $79.07 back on March 23, 2020 at the height of the pandemic.
Since that point, almost 11 months later to today, the stock has risen ~236%, marking quite a return for eagle-eyed investors who hopped in at the right time.
Moreover, the Walt Disney Company is expected to report earnings after market close on Thursday (2/11/2021).
The direct-to-consumer portion of the business will seek to keep pace on a maddening rise no one quite expected. Disney+ is propelling the company during the pandemic and is expected to display respectable first quarter 2021 fiscal results.
If Disney is able to surpass analyst expectations on earnings and revenue, the stock should respond positively to the news. Wall Street has been impressed by Disney’s ability to navigate through a pandemic with the ease it has showed us thus far.
Disney+ Helping Out
Back in December it was announced that Disney+ had reached 86.8 million subscribers, far surpassing the expectations for the young streaming service.
It would be quite remarkable for Disney to announce that they surpassed the 100 million subscriber threshold in Q1 of 2021, but growth is expected per usual.
By the end of 2024, Disney is expected to reach three hundred to three hundred and fifty million subscribers. This will be attained through Disney+, Hulu and ESPN+.
MickeyBlog does not provide financial advice, however, owning some Disney stock ($DIS), is not the worst idea ever.
Earlier we wrote about “The New Disney”, which you can read here.
The transition from core Disney values and traditions has been torture for the most loyal of Disney fans. It is important to remember that the company is seemingly only getting stronger and setting itself up for a bright future.
At the most recent Disney Investor Day, the company announced that Disney+ will now accommodate ten new Marvel series and ten new ‘Star Wars’ series. That is on top of fifteen animated and live-action Disney/Pixar series as well as fifteen soon-to-be Originals from Disney/Pixar.
If you missed out on everything that was announced at Disney Investor Day, don’t worry! One of our writers made sure to capture everything that was discussed. He breaks it down right here.
With all of this, it is surely an exciting time to follow The Walt Disney Company as they navigate through the upcoming decade with a plethora of anticipation and expectations.
Check out this vintage Disney stock certificate. A little more old-school than today, huh?