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In a bid to remain competitive in the market amid the pandemic, Disney has opted to restructure its business with a focus on streaming.
Shares of the media giant Walt Disney Company (NYSE: DIS) were trading with an approximately 5% rise during the Tuesday’s pre-market trading session. DIS shares closed the Monday’s trading session at $124.97, 0.01% down. The jump is attributed to an announcement from teh Disney company that it has reorganized its international operations to focus majorly on streaming and meet customers’ demand.
Disney Stock amid the Pandemic
Disney stocks have mostly been on the receiving end during the pandemic, due to its nature of business operations. According to figures provided by MarketWatch, Disney stocks were down 13.59% year to date through Monday. However, they had added approximately 7.53% in the past three months.
On the other hand, they had dropped around 4.78% in the last one month through Monday and were now up 1.30% in the past five days. On the daily chart, Disney stocks have formed a double bottom and recently crossed the 200 MA. On the weekly chart, the buyers are stronger than the sellers and seem ready to push towards its all-time high around $153.41.
Disney stocks have been consolidating since January 2016. If they break above the consolidation, they will have begun a new rally to reach a new record high. Fundamentally, Disney stocks have been devastated during the pandemic as social distancing rules have made its core business non-profitable.
At the time of writing, the company had a market capitalization of approximately $225.85 billion with 1.81 billion outstanding shares.
The company is in a position of restructuring its business and venturing more to make its business profitable. Moreover, after 25 credible Wall Street professionals critically analyzed Disney stocks, they have them an average of an Over rating.
During the last quarterly report, Disney reported a sharp decline in revenue, 42% down. This comes with the increased competition from other entertainment companies including Netflix Inc (NASDAQ: NFLX) whose stocks have rallied over 66% during the pandemic.
Disney Business Reorganization: Focus on Streaming
In a bid to remain relevant and competitive in the market amid the pandemic, Disney has opted to restructure its business operations to meet customers’ needs.
On Monday, the company announced that it plans to centralize its media business into a single unit responsible for content distribution and ad sales. CEO Bob Chapek told CNBC that the company will be focusing more on streaming as that is what the market hungers for during the pandemic.
He further indicated that the change is not in response to coronavirus but rather the pandemic has accelerated its transition which was bound to happen.