Disney stock is the stock of the Walt Disney Company, the maker of some of the world’s most famous cartoons and films. The company is a large, multinational mass media conglomerate based in Burbank, California. Its headquarters are located at the Walt Disney Studios complex. Investing in Disney stock can be a rewarding way to diversify your portfolio.
Disney stock has fallen sharply since the stock market crash of late 2018 that led to a 40% plunge in the stock. However, the stock has climbed back to new highs on March 18, 2020. However, since then, it has been downhill from its record high, and it has now fallen below its 50-day moving average, more than 35% below its 52-week high. Fortunately, the company has reopened some of its parks, which will likely increase the stock’s prospects for future box-office sales.
Despite the stock’s recent decline, analysts say that the company remains a strong company. Disney has animated franchises that span across movies, home videos, and musicals. The company’s theme parks will rebound when capacity restrictions are removed, and it remains a top vacation destination. Even though Disney is losing money in the short-term, analysts are confident that the company will eventually turn a profit on its new Disney+ streaming service.
Owning Disney stock is an excellent way to teach children about the stock market and the business world. While many investors may find it risky, its history is impressive. As such, if your child is a Disney fan, Disney stock is a great way to help him or her understand the business and stock market.