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Summary
- Disney stocks have gained 47 per cent in the past six months.
- The stock was up 2.78 per cent at $197 per share on Tuesday.
- Disney shares were among the top volume movers, at more than 23 million.
Stocks of American media and entertainment company Walt Disney Co (NYSE:DIS) have seen steady growth in recent months as markets resume operations and people are raring to venture out and start a new chapter of life away from the COVID crisis.
NYSE:DIS stocks grew 32 per cent in the last three months and 47 per cent in the past six months, a significant gain, given a large part of the traditional revenue streams had dried up due to COVID.
This underscores investors’ bullish sentiment, driven by the belief the company would make a strong comeback as the pandemic situation improves and more people would sign up for their outdoor recreational activities from theme parks, theatres to special events. The company also runs television channels and makes blockbuster movies that are screened across the globe.
Disney stocks were traded at $197 per share on Tuesday, up by 2.78 per cent from the previous close. Aside from value addition, the stocks' popularity among investors can also be attributed to the fact that they have been among the volume leaders in the stock markets, averaging the 10-day and 30-day numbers at 15 million and 11 million, respectively, which is not an ordinary feat.
©Kalkine Group 2021
Should You Buy Disney Stock?
Disney stocks have the potential to gain even bigger, considering the company’s global reach and a mammoth market capitalization of over $357 billion. This could be the time to bag the stock before it gets costly, which is likely, given that it is making progress from the peak of the COVID slump.
This aspect can be drawn from the company’s first-quarter performance of 2021, in which it reported revenues of $16,249 million, which was down by 22 per cent from the corresponding period. Also, EPS decreased by 98 per cent to $0.02 from $1.17 in the same quarter a year ago. The company said that the most significant impact on the business was felt on their theme parks and the cruise ship operations, which pulled down the revenue collections.
But investors are rooting in the hopes that Disney’s extensive experience and market expertise, as well as brand recognition, would help the company bounce back quicker than most other peers.
The company is known for the famed characters Mickey Mouse and Luke Skywalker. It also runs well-known film production studies such as Pixar, Marvel, and Lucasfilm.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
