Walt Disney Co (NYSE: DIS)
Walt Disney has had an incredibly hard time in the market over the past year, and for good reason. However, things seem to be turning around for the company and investors are starting to ask whether or not now is the time to buy. In my personal opinion, I’m expecting to see gains from here. Today, we’ll talk about why the stock had such a rough time, what’s changing, what we’re seeing from the stock today, and what we can expect to see from DIS ahead.
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DIS Has Had A Rough Year
It’s something that many thought they would never say… Disney had poor performance in the market! Historically, this stock has been an incredibly strong long-term investment choice. However, over the past year, the stock has been declining. The reason for the losses on the stock is relatively simple.
DIS is an entertainment company. They own theme parks, movie franchises, game franchises, and much, much more. In fact, there is no other company that has been able to capture the imaginations of consumers young and old quite like Disney.
However, there’s a bit of a downside to the business model. At the end of the day, entertainment is one of the first expenses that consumers look to cut when economic conditions become concerning. So, when global economic concerns started to pop up late last year, less people traveled to Disney World, purchased movies, purchased games, and upgraded their cable packages to include ESPN. At the end of the day, the biggest problem for DIS was the economic downturn we’ve seen over the past year.
Economic Conditions Are Starting To Improve
The good news for DIS investors is that economic conditions around the world are starting to improve. In the UK, a very strong stimulus package has led to improved economic movement. In Japan, things are starting to get better, and while inflation is a bit of a concern in China, other key stats in the region are starting to improve. The same is being seen right here in the United States.
This is great news for Disney. After all, as mentioned above, while the company has created an incredible brand, it is heavily exposed to economic volatility. As a result, with economic conditions improving, DIS is headed back in the right direction.
What We’re Seeing From The Stock Today
At the moment, Disney is doing incredibly well in the market. Currently (1:50), the stock is trading at $93.33 per share after a gain of $0.91 per share (0.98%) thus far today.
What We Can Expect To See Moving Forward
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Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Disney. The bottom line is that the pressure that was put on the company is starting to be relieved and, as economic conditions improve, the prospects for growth improve. Don’t get me wrong, there are still economic questions that may lead to headwinds in the future. However, in the long run, DIS will likely prove to be an incredibly strong investment option!
[Image Courtesy of Wikipedia]