While the market has been trending downward a lot lately, there was a glimmer of hope today when Disney stock began to rise.
This turn-for-the-better comes one day after The Walt Disney Company announced they’ve reached a major milestone with their live-streaming subscription service Disney+.
Since launching the platform just short of five months ago, Disney+ has signed up over 50 million subscribers. While the service became available to U.S. residents on November 12, 2019, Disney+ has only been in parts of Western Europe for a few weeks now. Even more recently, Disney+ has gone live in India and France.
In light of how well Disney’s new digital streaming service is now performing throughout the world, Disney stock surged 5.4% today. According to MarketWatch.com, J.P. Morgan analyst Alexia Quadrani said she was “impressed” by the surprise announcement of Disney+ subscribers that this report of 50 million+ subscribers comes at a time when analysts have been lowering estimates across other areas of Disney’s business.
“We view Disney+ as a core driver to the company’s extensive ecosystem of consumer touchpoints, which we believe will benefit the Parks and Studio once normal operations resume,” Quadrani wrote in a note to her clients. As of today, Disney’s stock has dropped 30.1% this year, while the Dow has declined 17.9%.
We’ll continue to follow this story and report any additional updates.
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