Walt Disney Co (NYSE: DIS)
Disney is a stock that has long been regarded as one of the most predictable and one of the strongest moves investors can make. For several years, the company has specialized in capturing the imaginations of consumers young and old. However, like most other stocks on the market, DIS has been on a bit of a roller coaster ride throughout the year 2015. Nonetheless, after the release of overwhelmingly positive news yesterday and strong expectations for a release tomorrow, Disney is doing incredibly well in the market at the moment. Today, we’ll talk about the news we heard yesterday, what’s coming tomorrow and what we’re likely to see from Disney moving forward.
Disney Signs A Deal With Alibaba
One big piece of news that became available yesterday is the fact that Disney has entered into a licensing agreement with Alibaba, one of the world’s largest online retailers. The agreement surrounds a service that was first launched in the U.K. last month and is known as DisneyLife. Under the licensing agreement, Alibaba has rights to market and commercialize DisneyLife in China. The new service is a relatively simple service that was created as a result of consumer habits changing from watching cable television to watching streaming videos. Essentially, DisneyLife customers will pay $125 per year. In exchange, they will receive access to a long list of streaming Disney movies, games, e-books, music, animated series and more. On top of the streaming services associated with DisneyLife, customers also have access to travel services and theme park information.
Because of the overwhelming popularity of Disney movies and other entertainment products, it is expected that DisneyLife subscriptions will essentially fly off of the shelves. It is also hoped that as a result of the travel services and theme park information that become available upon subscribing, this move will also help to lift Disney’s theme park franchise.
The Newest Star Wars Movie Comes Out Tomorrow
Another big piece of information that is leading to investor excitement surrounding DIS is the fact that the company’s Star Wars franchise is likely to grow in a big way tomorrow. That’s because tomorrow evening, Disney’s newest movie in the franchise, Star Wars: The Force Awakens, will be available in theaters nation-wide. According to Forbes, it is expected that the movie will have box office sales between $180 million and $220 million this weekend. That’s quite a bit of revenue that will be added to Disney’s earnings report for this quarter!
What We Can Expect To See From DIS Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from DIS. The reality is that when we talk about Disney, we talk about a company that has done what no other company has been able to do… capture the world of imagination and turn it into a very lucrative business. With the new DisneyLife service that’s currently live in the U.K. and will soon be launching in China, DIS is likely to drive a large amount of revenue. Also, with the newest Star Wars moving having an opening night relatively soon, things are looking great. All in all, I believe that DIS will maintain its strong reputation as one of the best stocks in the market for quite a while to come.
What Do You Think?
Where do you think DIS is headed and why? Let us know your opinion in the comments below!