Disney and its shareholders are at one with the Force
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
I was reading an article recently about which was the better investment: Disney or Netflix?
According to CNBC, had you invested $1000 in Netflix in 2009, it would be worth more than US$58,000 today. That’s a total return of 5700%.
A $1000 investment in Disney, on the other hand, would be worth US$7700, a gain of just 680%.
Of course, that's just a 10-year measurement.
Disney first traded on over the counter (OTC) markets in 1946 and listed on the NYSE on 12 November, 1957. It closed that day at US$13.57.
Disney's stock performance has always been greatly affected by the box office performance of its movies. In early days, at the time of Snow White and Cinderella it boomed, but Pinocchio and Fantasia was a bust.
This article published by Business Insider and first featuring in Global Financial Data explains why shareholders who got in on Disney while it still traded OTC would be happier than the Little Mermaid.
Movies can still be a barometer, but other factors are at play now. Walt Disney was a driving force, much like Zuckerberg drives Facebook or Steve Jobs was the face of Apple. Branding is also a major influence.
Which is why Disney’s creation of a $1 billion Star Wars theme park could be its next big move, bigger than the company moving into streaming TV to take on Netflix.
The Orlando theme park will open in August, but its twin opens today in Anaheim and should prove to be a happy place for fans, the company and shareholders alike.
Part of the reason shareholders should be happy is the entry price: A visit to Star Wars: Galaxy’s Edge will set you back $104 for a day pass on a ‘low-demand’ day, while regular and prime-time visits, on holidays and weekends for example, will cost $149 a day.
That’s money in the bank.
Disney is currently trading at $131.57 at a market cap of $236.7 billion and while the announcement of the opening of the theme park didn’t have much impact on the share price, financial results for the next two quarters are expected to be extremely positive.
Disney is also staggering the excitement, opening the theme park’s signature rides weeks or even months apart to keep levels of interest heightened. It’s a bold move, but one that will likely pay off with repeat custom.
If Disney knows anything, it is how to entertain a crowd.
In the end, you may be able to chill with Netflix, but you can thrill with Disney and that, to me, is a bigger drawcard.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.