DIS Stock Up 1.6% in Pre-market, Disney+ Reports 95M Subscribers

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by Steve Muchoki · 3 min read
DIS Stock Up 1.6% in Pre-market, Disney+ Reports 95M Subscribers
Photo: Depositphotos

Interestingly, Disney (DIS) stock jumped approximately 35% last year despite the coronavirus crisis.

After closing yesterday trading at $190.91, Walt Disney Co (NYSE: DIS) stock is up approximately 1.6% in the pre-market. The spike is attributed to the better than anticipated fourth-quarter earnings results reported on Thursday. Notably, the media and entertainment conglomerate reported a staggering 94.9 million paid subscribers for its Disney+ unit.

As a result, the company reported a revenue of $16.25 billion against the Wall Street consensus estimate of $15.9 billion. Besides, the company reported an operating income of $29 million, double the Wall Street consensus. However, the figure was down approximately 99% from the past year’s results.

With Disney parks heavily impacted by the ongoing pandemic, the company shifted its focus to the streaming business as more people stayed at home. The streaming sector saw a huge surge despite the increased competition from the likes of Netflix Inc (NASDAQ: NFLX), Hulu, and HBO max.

Disney stock remains pegged with the coronavirus developments, particularly vaccine rollout. Mind you, the company is split between its Disney park and its Disney+ thus capable of thriving from either angle.

Interestingly, Disney stock jumped approximately 35% last year despite the coronavirus crisis. In addition, they have managed to add over 40%, and 10% in the past three months and one month respectively according to MarketWatch.

With the experience from the 2020 coronavirus crisis, Disney is capable of somehow planning. Besides, with a market capitalization of approximately $344.08 billion, the company is capable of evolving in accordance with the market change.

Disney Stock and Its Q4 Earnings Results

After the better than expected Q4 earnings results, Disney stock investors and analysts can now watch the situation from a better position. Notably, Disney has now hit its prior 2024 target of paid subscribers and has now scaled its targets to approximately 230-260 million subscribers by 2024.

The ambitious target will see the company reach the heights enjoyed by the likes of Netflix. The park segment continues to lag as its revenue dropped by 53% to $3.59 billion during the fourth quarter. Disney recorded an EPS of 32 cents during the fourth quarter.

Forward, Disney has put in place measures to ensure the future growth prospects of its stock market despite the crisis. Among the notable measures is the increase in monthly subscription fees by $1 to $7.99 in the United States and by €2 in Europe to €8.99. Besides, the company is working on over 100 projects to add to its Disney+. With the park segment closed in several places, the company is considering day-parting annual passes when the park reopens. Hereby capable of controlling the park visitors.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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