The House the Mouse built… That may be the Gorilla’s favorite way that people used to describe the wonderful and magical world of Disney (DIS). Disney is one of those special entities that spans time – as generation after generation discover the movies, shows, music and theme parks that have built this brand that once revolved around a mouse into an international phenomenon. While the experts say that Coke is the most recognized brands in the world… You can bet their running neck and neck with Disney. However, like all things during the pandemic – Disney took a huge hit this year – when the attendance to its theme parks dropped to practically nothing… However, that said – Disney stock has just experienced an incredible resurgence recently – and it has many investors scratching their heads and wondering “why.” If you’re one of those investors wondering if Disney is a smart move – keep reading… You may not know this, but Disney stock is about to turn 58 years-old in January. That’s a long time for a company to be public… However, it hasn’t been until more recent times – that those who invested in Disney really began to see the stock bear fruit. Chalk it up to the Digital Age to find a way for an entertainment company to discover its profitability. Regardless of the multiple reasons as to why this occurred – the fact is that Disney has been a steady moneymaker for the past 8 years – giving early investors a chance at almost 370% gains. Not bad right? Here’s something that even better…About 82% of those gains were made in 2020. That’s hard to reconcile, right? Seeing as, like almost every business on the planet has had to deal with major setbacks since the start of the COVID pandemic, save Wal-Mart (WMT) and Amazon (AMZN), whom seem to be pandemic-proof. What makes this even more amazing is the fact that with Disney having to close its theme parks due to lockdown restrictions – it has had to lay of 28,000 employees – and it has seen a loss at the gate of more the $5 billion. So… How is Disney’s stock continuing to surge? Well, again, you can thank the ingenuity of the Digital Age again – as the big money make for Disney going forward looks to be the strength of its streaming service. Last year, Disney followed in the same footsteps as Netflix (NFLX) and Amazon Prime – and got into the world of streaming content… A move that has paid off for them BIGTIME. With such a rich catalog of movies, shows and entertainment to throw on its new streaming service, Disney+, it became an instant hit… And in just over a year – have been able to attract almost 87 million subscribers – all of whom pay a paltry sum of $6.99 per month. To put that in perspective – Netflix is leading that charge at 195 million subscribers per month – paying an average of $14 a month – but its streaming service started 13 years ago. That makes Disney’s subscriber rate and impressive number in such a short period of time… However, recently, investors watched their Disney shares surge – all off the strength of its announcement of the coming shows and movies it’s planning to release. Based off the strength of their Marvel Comics and Star Wars coming content – the stock price surged 14% overnight. There is a lot of anticipation coming for the Disney+ original content – as its first release of the Star Wars related “The Mandalorian” has garnered praise from both fans of the series and the casual watcher alike. And with the announcement being made that another Star Wars series based around popular character Obi Wan Kenobi – and new Marvel Comics original content starring characters from their wildly popular Avengers franchise… And you have a recipe for $$$. You may be wondering if now is a good time to buy – and it’s a good question… But seeing as this spring Disney plans on bumping up its price for the streaming service from the $6.99, to $7.99 – if it gains no new subscribers – it will be making an extra $87 million per month. So, it may be a GREAT time to get in on Disney – before said price bump and said shows start airing. If you’re having a hard time making a decision on whether to buy or not – we get it… Not everybody understands the ins and outs of the investment world – but that’s exactly why I started GorillaTrades in the first place – so I could help those who don’t have the best strategies to make their money work for them. I’d love to show you how it’s done – so please, consider becoming a member of GorillaTrades today – as I can’t really tell you how it works, only show you. Regardless of what you decide, you definitely want to take a look at Disney (DIS) – as it may be something you want to add to your portfolio. |
“Somehow I can’t believe that there are any heights that can’t be scaled by a man who knows the secrets of making dreams come true. This special secret, it seems to me, can be summarized in four C s. They are curiosity, confidence, courage, and constancy.” – Walt Disney