Disney Stock’s Last Hoorah For 2016
Disney has become one of the biggest companies in the entertainment industry, with acquisitions in various massive companies like Marvel and Lucas Films making the entertainment giant a complex company. Because it is famous for its history, it fit the modern pop culture almost instantly.
With Disney expanding its franchise and acquiring more companies, it is almost hard to believe that the entertainment giant has gone through rough times in the past year.
Last year’s Q3 report showed that Disney Stocks slumped by 4%, with Disney’s movie studios being its only source of strength. The Company’s Marvel unit dominated this past weekend’s box office sales, the movie Doctor Strange alone generated $85 million but this will not be enough to balance the losses driven by ESPN.
But the Company seems to have pulled something up from their sleeves as their stocks have grown substantially in the last few days of 2016. The “ESPN problem” seems to have vanished in thin air as Disney’s Stocks have closed 4.55% higher in the last trading session of 2016.
Will Disney Continue to make dreams come true for investors in 2017
In a research conducted by Joseph Bonner from Argus, which is an analytics company stated that Disney is just “positioning itself for long-term growth” Bonner’s these comments was later followed by Barclays, which upgraded Disney stocks last week and even and even stated that ESPN is “de-risked” going into 2017.
The fact that Wall Street is on Disney’s side of the bargain should be enough encourage enough to investors. with the company still growing earning per share at double-digit rates, combined with more than $13 billion in cash flow, analysts are in agreement that the risk versus reward when it comes to investing in Disney is now more favorable.