Just like an elated child watches the fireworks soar above the Disney castles, investors enjoyed watching the soaring prices of Disney stock earlier this week. Overall, this week has proven to be an exciting and interesting week for the Walt Disney Company (NYSE:DIS). Read below to find out more about the world’s most magical brand.
Analyst Rating Fluctuations To Observe: Walt Disney Company (NYSE:DIS): (Released 16/06/16): Walt Disney Company (NYSE:DIS) has been a very interesting stock to watch as of late. Despite the increasing prices earlier this week, Mitchell Collin reported that the stock closed on Thursday at $98.38, which was a -0.13% decrease from the previous day. According to Thompsons/First Call, there have been several differences in analysts opinions on the stock. Of the analyst’s, 6 of them rated it “Strong Buy”, while 13 provided a “Buy Rating”. However, another 14 recommended a “Hold Rating”. This diversity of opinions will prove to be interesting in the upcoming weeks as we watch Disney’s stock movements.
Walt Disney Co (DIS) Options Trader Drops A Six Figure Wager: (Released 15/06/16): Although most stocks haven’t been performing very well recently, Disney is managing to keep their head above the clouds. The stock has been getting an extra boost this week, likely aided by the opening of a new Disney park in Shanghai, China on Thursday. Despite this recent addition, Josh Selwey says the stock is only a good buy for the short-term. The reason being that the stock sits at 19% on Schaeffer’s Volatility Index (SVI), which is in the low 12th annual percentile. This means the stock has shown a tendency to make bigger moves than the options market has priced in, going back one year. So in essence “just keep swimming” with this stock on the books for the meantime but be wary of the future.
Consumer Stocks To Buy Now: Walt Disney Co (DIS): (Released 15/06/16): Although the Chinese economy has been slowing, Will Ashworth (@tslash1) notes that the opening of Disney Shanghai has been a major success. The opening of this park is a fairy tale ending for Disney, who has undergone years of negotiations with the Communist government in China. The results of the deal means that Disney will have to share the profits with the Chinese government. That shouldn’t be a problem given that the opening of the $5.5 billion park, which is four times the size of Disneyland, grants Disney access to 330 million people living within a three-hour drive from the park. The success of the park should serve as a good omen for the stock, in addition to the fact that CEO Bob Iger is already planning to further invest in the park to meet excess demand.
Disney World Gator Attack May Hurt the Mega Parks Brand: (Released 16/06/16): In Larry McShane’s (@lmschaneydn) article we find that there has been an unfortunate and tragic plot twist to the storyline of Disney’s week which may or may not cause lingering damage to the world’s most revered brand. Although Disney is supposed to be fun, safe and worry-free place, it proved not to be so for young two-year-old Lane Graves who was found dead on Wednesday at Disney’s Orlando park. The two year drowned and suffered traumatic injuries caused by an alligator attack. Disney has responded by conducting a swift and thorough review of all their processes and protocol, which would include increased placement and wording of warning signs. Karen Kreamer, founder of K2 Brand Consulting, doesn’t believe that the impact of this attack will be long-term but for the time being people across the globe are shocked to see that this happened within “The Most Magical Place On Earth”.
If only we had a crystal ball to see the future…but for now we’ll have to just wait and see what the future of this stock holds.