A ray of sunshine over Disney’s theme park businesses and optimistic expectations ahead of the company’s quarterly earnings report on Thursday helped propel the company’s stock by 5% to record territory.
The stock closed Monday at $ 190, up 5%, after reports that the company planned to rehearse up to 1,000 workers to help it host a food and drink festival at California Adventure in March. Outdoor dining was resumed by the state last week. Few details were revealed about the festival, which was reported by the media, including Good Morning America and the Los Angeles Times but not formally announced by park officials. Theme parks, historically a revenue generating steamroller for the company, are on their knees, with 28,000 workers made redundant during Covid-19.
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Disney’s earnings helped propel the Dow Jones Industrial Average to a new record of 31,385.76, its sixth consecutive session of positive movement. The Nasdaq, S&P 500 and Russell 2000 also closed at record levels.
AMC was a notable exception to the recovery, with shares in the main cinema circuit dropping nearly 10% to $ 6.18 in average trading volume. The company’s stock recorded meteoric gains in recent sessions, with retail investors organized on Reddit placing big bets on the shares of AMC, GameStop and several other struggling companies in an attempt to squeeze short sellers.
Even after recent declines, the stock price is still at its highest level since Labor Day last year, when Warner Bros opened Principle and optimism for theatrical releases was great in many corners of the industry. Since then, Covid’s rates have worsened, major markets have remained closed and the exhibitor has had to struggle to raise funds. His most recent report to investors was that he has adequate liquidity to survive 2021, even if pandemic closings persist.
Disney is due to release its financial results for its first fiscal quarter on Thursday, amid overwhelming optimistic sentiment about its pivot for streaming. In mid-December, Disney + had 86.8 million global subscribers and the company raised its prices and boosted its five-year subscription forecasts. Wall Street analysts expect revenue to drop 23% to $ 15.9 billion in the quarter ended in December, with an adjusted loss of 42 cents per share, a major fluctuation from the $ 1.53 per cent profit. share in the same period in 2019.
The number of subscribers in streaming is expected to extend the optimistic outlook from Disney’s outlook, with the company expecting the total number of subscribers on Disney +, ESPN + and Hulu to exceed 300 million by 2025. Even though the company recorded its first full year of losses in decades during fiscal 2020, the belief that it can match Netflix, which has 203.7 million subscribers, is encouraging many investors.