2020 was undoubtedly a challenging year for the entertainment giant Disney. However, it seems like the king is slowly regaining its power and ready to take over again.
As the number of people affected by COVID-19 is getting lower in the U.S, the restrictions are coming down. That is good news for both individuals and Disney.
The House of Mouse can slowly restart operations which it had to halt during the lockdown. People are allowed to indulge in some entertainment outside of their homes, which could give a needed boost to Disney’s business.
That positive trend could be one of the reasons for Disney’s stock surge during the last six months, but it’s not the only reason.
Disney Parks will shine bright again soon.
The happy announcement of easing the restrictions in California gave new hope and called for celebration for Disney.
That means Disneyland and Adventure parks can finally welcome guests again. For those who don’t know, California parks are a major contributor to the products segment that brought in $6.8 billion in operating income in 2019.
When Disney announced ”A Touch of Magic” with the upcoming event at Disney’s California Adventure park, tickets were sold out within hours.
Hold on, investors! There is something for you in the magic box.
The fact that you can’t attend the magical event at the park doesn’t mean you can take your share of fun. Disney’s other business continues to flourish. As announced recently, Disney+ had reached the 100 million subscribers record. Combined with the 51.1 million paying members of ESPN+ amount to a total of 151.1 million subs.
And it’s not done expanding. 2021 seems to be a banner year for Disney and investors. Theme parks, movie theatres, resorts, and cruise ships are expected to generate operating income by the end of the year.
To sum it all up, Disney knows how to keep stock investors hooked. Those who invest in Disney stock will do well in 2021 with apparently will be a great year for the entertainment giant.