Stock Analyst: A Big Disney Parks Comeback is Likely
This morning, I looked at the after-hours trading and saw a pretty flat line for “DIS” and a volatility measure of 37%.
Now, I don’t know what that means, but it doesn’t sound good.
So, let’s just say I wasn’t thrilled about the prospect of the day (remainder of the week) on Wall Street for The Walt Disney Company.
The Parks Will Come Back
But then I was watching The Street and host Katherine Ross asked Sr. Portfolio Analyst of ActionAlertsPLUS Jeff Marks about Disney+ and its importance.
However, and after talking about the “stickiness” of Disney Plus, Marks pivoted to the Disney Parks as significant to DIS in the near term.
“My working thesis and it’s been this for a while: I think the parks are going to come back and come back big,” said Marks. “The average US consumer has increased their savings during the pandemic and we’ll like see spending habits shift toward experiences and away from goods once it becomes easier to travel, and once it becomes more feasible to enjoy activities in a public space again.
“But this is why I think Disney is going to come back strong and it all comes back to Disney+.
“So with so many young and growing families streaming Disney content for hours upon [hours] — during the pandemic when they were stuck at home — what else was there to do?” added Marks. “100-million global subscribers speaks for itself…[and] so many kids of these families have absolutely fallen in love with this iconic brand and the characters.
“How are you going to make those kids happy? Take them on the trip of a lifetime at Disney World or Disneyland,” he said.
Marks on the Mark?
But what do you think? Let us know in the comments.