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Financial

Market Update: Disney Stock Rises, Florida Resort To Reopen!

Many industries are facing a big problem right now. Due to Covid-19 pandemic, most businesses are running into huge losses. Their inability to generate revenue right now is causing most of them to struggle. Media companies, however, are mostly performing well during this time. People are now spending more time on their TVs and laptops. Since they do not have much else to do, they are relying on digital media as a source of entertainment.

Disney is arguably the biggest media company in the world. The company has many different media businesses. But unlike some other media companies, Disney is not doing too well. Disney gets a lot of revenue from making movies. It owns brands such as Pixar and Marvel. Another great source of revenue for Disney is due to the resorts and amusements park they own. Since most of them are not open, Disney has also been having some problems.

Disney Stock Rises

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Disney’s stock rallied on Monday, 18 May 2020. The stock opened at a price of 114.47 USD and further rose through the day. At the end of the day, the stock closed at 116.85 USD. Compared to the previous closing price, Disney’s stock has risen by 7.15%. This came after Disney had seen its stock price fall multiple times over the past times.

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Why Did The Stock Rise?

The rise in stock price for Disney came after the media giant announced that it was reopening its Spring Resort in Florida. The company is planning to reopen the resort on Wednesday, 20 May 2020. The past few months have been extremely difficult for amusement parks and resort, but this news caused Disney’s stock to rally. Due to this announcement, the stocks of SeaWorld Entertainment, SixFlags Entertainment, and Cedar Fair also rose.

Covid-19 Impact On Disney Stock

Disney’s stock has been falling ever since Covid-19 became a pandemic. The stock has fallen from 140.37 USD on 20 February 2020 to a price of 116.85 USD on 18 May 2020. In between, the stock fell as low as 85.76 USD on 23 March 2020. Disney is reopening in Asia, and all industry experts are closely following the situation to see what is the future for amusement park companies. However, it will be a while before Disney can show some positive stability in its stock again.

credit www.reuters.com

 

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