Disney Stock (DIS) jumped 13% last Friday to new all-time highs. Now its share is up more than 20% this year. That’s an impressive feat, considering the COVID-19 pandemic has wreaked havoc on Disney’s theme park business and forced its film studios to postpone major releases in theaters.
Citi analyst Jason Bazinet noted in a report Friday that Disney is making a strong commitment to new content, noting that increased costs on the program have paid off as customer growth continues to pick up faster than expected. .
Disney Can Keep Up with Netflix
These numbers prove Disney can compete with the current Netflix streaming king (NFLX), whose share is up more than 50% year-to-date. As well as its film studio and animation library, Disney also owns Pixar, Marvel and Star Wars creator Lucasfilm.
“The Mandalorian,” a Star Wars spin-off is now a huge and successful product, as the series turns baby Yoda into a pop culture phenomenon.
Disney also recently acquired studio assets from Fox (FOXA), giving the family-friendly media giant some clearly more adult-oriented and R-rated fare too. And Disney also now has complete control over the Hulu streaming service.
However, streaming competition is getting tougher. Disney and Netflix have to compete with tech giants Apple (AAPL) and Amazon (AMZN), which are spending more and more money on original programs.
Other media giants have also launched streaming services, notably Comcast’s (CMCSA) Peacock; rebranding CBS All Access as Paramount + from ViacomCBS (VIACA); and HBO Max, a service for Warner Bros. content. owned by CNN’s parent company, AT & T’s (T) WarnerMedia.
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