Credit: DisneyAfter the launch of Disney+ was met with a boom of over 10 Million subscribers in less than a day, Disney’s stock price began its largest one-day jump since April and reached the highest point it has ever been. To understand the correlation, let’s break down the events of the past three days.
Tuesday, Nov. 12th
Disney+ launches. In less than 24 hours, it records over 10 million subscribers. This comes at the surprise of many on Wall Street, and suddenly, the very-necessary goal of having 60 million-90 million subscribers in five years seems very doable. In fact, at this pace, Disney could hit its quota in two years.
Wednesday, Nov. 13th
According to MarketWatch.com, The Walt Disney Company’s stock (DIS) saw a 7.3% increase, closing at the all-time high of $148.72. This was the company’s largest single-day increase since April 2019, and Disney was the best performer in both the Dow Jones Industrial Average and the S&P 500 index on this day. Over the course of this year, Disney shares are up by 35% while the S&P 500 saw a 23% increase, and the Dow Jones Industrial Average saw 19%.
Thursday, Nov. 14th
After an initial dip in the early hours, Disney’s stock’s climb continued, and if only for the briefest moment, The Walt Disney Company recorded its first 52-week high above $150 per share. $150.63, to be exact. It ended the day on the NYSE, sitting at $147.15. This is still $10 higher than it’s lowest recorded price since the launching of Disney+.
Again, all signs are pointing to the immediate meteoric success of Disney+ for this spike. But what Disniac can really be surprised by Disney+? It’s a digital treasure trove of not just the Disney, Marvel, and Star Wars content that used to be on Netflix, but to every piece of beloved brilliance that was locked away in the Disney vault combined with even more stories from The Simpsons to National Geographic. Who wouldn’t want to get in on this?
Meanwhile, Netflix saw a 3% dip in its stock price on Wednesday. Its projected 4th quarter subscriber additions landed lower than Wall Street anticipated.
While the question of whether Disney’s stock price can stay this high is still to be decided, Disney+ is already proving itself to be a dominant figure in the streaming realm. Who knows how far it can go if it keeps up its momentum.
Source: MarketWatch.com