Is Walt Disney Stock Is Set to Skyrocket on Theme Parks Reopening?
Walt Disney stock price has been under pressure since the coronavirus pandemic has forced the company to close its theme parks early this year. Although shares regained some value in the past month, the theme park reopening would help it in regaining the rest of the value that it had lost during February and March.
The company has announced to reopen its theme parks in Europe and the United States. Its theme park in Orlando was reopened during the weekend for a limited number of guests. Disney’s Chief Medical Officer says along with limiting the number of guests, Disney also plans to work on temperature checks, face coverings, and extra sanitation efforts.
“There’s a lot of trusts here, both from our cast members and our guests, and we’ve got a responsibility to deliver on that trust,” said Josh D’Amaro, chairman of Disney’s Parks, Experiences and Products segment.
The guests have not been showing so much interest in visiting theme parks this year due to pandemic, but the company revealed that guests are booking reservations for 2021.
The Walt Disney stock price is currently trading around $119, up from $85 that it had in March. However, the stock is still down 17% year to date.
The bulls believe Walt Disney stock price is presenting a great buying opportunity for long-term investors. They claim that Disney’s theme park business would again generate substantial revenue for the company by 2021.
In addition to revenue from theme parks, the company’s online streaming business is likely to offset the negative impact of a pandemic. Disney has achieved 50 million Disney plus subscribers in April, up from its 33.5 million reported as of March 28. The market analysts expect subscribers to reach 60 million at the end of the second quarter.