The Walt Disney Company (NYSE: DIS) stock closed yesterday trading at $194.52, down 3.66%. Meanwhile, Disney stock was up approximately 1% during the pre-market trading session. Disney stock remains significantly bolstered by the tremendous success in the streaming sector Disney+.
According to Bob Chapek, the chief executive officer of the entertainment giant, Disney+ has surpassed 100 million paid subscribers. “The enormous success of Disney+, which has now surpassed 100 million subscribers, has inspired us to be even more ambitious, and to significantly increase our investment in the development of high-quality content,” Chapek said in a statement.
Disney stock investors are optimistic of better returns especially with the increased investment in quality streaming services. Notably, Disney stock jumped approximately 84.35% last year. Moreover, Disney stock investors have experienced a profitable start of the year, whereby they are up approximately 7.36%, 25.95% year to date, and in the last three months respectively according to MarketWatch.
The company has significantly benefited from the stay-at-home order meant to control the coronavirus pandemic. Most people have subscribed to different entertainment sources, particularly video streaming services. The competition in the entertainment industry has grown tremendously in the past few months.
Previously, Disney indicated that it has plans for about 100 films and television projects, about 80% of which are set to go directly to Disney+. Among them, more than 10 are set to be Star Wars shows, with 80% set to go directly to the Disney+.
The company has seen successful quarters in the past despite the park division being severely impacted by the pandemic. Even though the parks are opened with precautionary measures, the numbers are still significantly lower than pre-corona.
Due to increased streaming demand fueled by the coronavirus pandemic, Disney has shifted focus to its Disney+ division and maximize profits. Initially, the company had set subscribers goals between 60 million to 90 million by 2024. However, the company hit and surpassed its goal thus forcing it to forecast its goal. According to the management, Disney+ expects approximately 230 million to 240 million paid subscribers by 2024. The huge demand has been observed since day one when the company recorded 10 million sign-ups.
Disney stock analysts and investors are however closely monitoring the coronavirus vaccine development to inform their decisions. A survey conducted by MarketWatch indicates Disney stock received an average of Over rating from 29 ratings. The company has a reported market valuation of approximately $366.52 billion.
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