Disney Will Be Trading Above $110 By The End of July
Disney fell 3.40% today because apparently not being able to do Park Hopper is worth $4 a share.
I’ve been on the sidelines with Disney for a while now, I have my shares (purchased at $92), but I’m not exactly bullish.
That said, I’m honestly stunned that the House of Mouse has managed to move so little in the last few months, given that it is in a fundamentally better place than it was in March.
1. The parks a re-opening. Lets not forget that there were rumors that the parks might be closed until the end of the year. Instead, they are going to be able to swing the gates open in time for the summer. While COVID-19 fears and significant safety requirements are sure to make a dent, the worst case scenario has been neatly avoided.
2. Disney+ got a boost. While Disney+ is barely a rounding error on their balance sheet now, it will likely be a huge part of their growth story in the years to come. COVID-19 helped them fast track their subscription goals, and assuming that those customers are durable, it will go a long way towards moving the brand forward.
