There’s a Lot to Like About Disney Stock
The entertainment institution has a ridiculously broad reach in society and a variety of offerings with positive expectations and catalysts
Disneyland has traditionally been described as the “happiest place on earth.” As it turns out, investors in Disney stock (DIS) should be feeling a lot of joy as well given all of their positive assets and catalysts.
Currently trading at $194.77 a share, Disney stock is already up about 11% so far in 2021. This comes despite a global pandemic that has shuttered and inhibited their typically thriving theme park locations. However, few companies can boast the broad range of diverse products and resources of the entertainment giant and so with the stock already trading at or near all-time highs, the future looks bright because of the litany of catalysts that could potentially keep the needle moving on the price for some time to come.
Rosy-cheeked optimism about the future of Disney stock doesn’t imply that it’s a perfect commodity with a guaranteed trip to the moon. Like other companies, they also have shortcomings (Significant lost revenue during the pandemic and debt to name two) but for the purposes of this piece we will focus on the positives, which are in abundance.
The parks will re-open with gusto: Disney owns and operates a total of 12 parks, both domestic and abroad. The pandemic has obviously created lengthy shutdowns and other impositions that have dramatically cut the number of visitors they see stream through the gate on an annual basis. Once Covid is better in hand and people feel more comfortable venturing out and traveling, the crowds should quickly return and with extreme force. With so many people effectively being restricted for any length of time for the first time in their lives, the desire to once again experience the pleasures of entertainment and travel should be overwhelming. Disney has always been a gold standard in these industries and as such should reap some of the biggest rewards once they are no longer inhibited.
The tide may already be starting to turn, as California announced this week that Disney, along with other theme parks and professional sports venues can start admitting customers again…