Walt Disney Co (NYSE: DIS)
Walt Disney has been a very interesting stock to watch as of late. As with most stocks, this year hasn’t been a great time for the stock. Nonetheless, this week could be a big week for the company, sending the value of the stock soaring. That’s because Disney will be opening a new theme park later on this week. Today, we’ll talk about the details of the new theme park, how it could send the value of the stock soaring, and what we can expect to see from DIS moving forward.
DIS To Open A New Theme Park
As mentioned above, this week is likely to be a very big one for Walt Disney, and for good reason. The company will be opening a new theme park, which has the potential to generate massive amounts of revenue and profit for the company.
On Thursday, a new Disneyland will open. The new theme park will be located in Shanghai, and for many, this is being looked at as a massive opportunity for DIS. The reality is that the company’s theme parks generate massive amounts of revenue. However, revenue correlated with the theme parks also helps the company’s top and bottom lines.
Think about it, Disney’s theme parks are destinations for consumers around the world. They have an amazing ability to capture imaginations. Perhaps more importantly, DIS theme parks keep the Disney tradition going, reminding consumers of the movies, shows, and other entertainment that they grew up with, and often leading to sales outside of the theme park as well. So, the new Disneyland Shanghai can prove to be massively profitable, both directly and indirectly.
This Could Send The Value Of DIS Soaring
Comparatively, Disney is having a strong day in the market today as investors await the opening of the new theme park. While many stocks on the market are struggling in a big way, DIS is in the green. Currently (1:17), the stock is trading at $98.12 per share after a gain of $0.55 per share or 0.56% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed expectation of what we can expect to see from DIS. In the short term, I’m expecting to see big gains this week, and that could be followed by strong movement next week as well. However, that’s the short term. In the long run, things are still a bit concerning. Here’s why…
First off, ESPN is still a struggling franchise. While the new theme park may help the company recover some of the losses associated with the network, this is still a very concerning area. However, it’s not the only reason I’m concerned.
The truth is that Disney does best when economic conditions around the world are positive. Think about it… DIS is an entertainment and media company. When consumers are worried about the state of the economy, they tend to spend less money on entertainment and media. With economic conditions around the world being negative, it’s hard to imagine that we’re going to see any real, long-lasting, meaningful growth in the stock any time soon. Also, with the concept of a Brexit on the line and the fact that it could have a devastating global economic affect, more headwinds could be coming to the stock in the near future. While these issues won’t be here forever, they’re definitely here now. So, I wouldn’t run to invest in the company at the moment myself.
What Do You Think?
Where do you think DIS is headed and why? Let us know your opinion in the comments below!