One Dow stock rebounded at a record high this week.
Disney stock hit an all-time high for three days in a row. This is the most recent surge due to the company’s streaming success. Disney launched its international streaming service Star in Europe, Canada and Australia this week.
The total number of paid subscribers for the Disney + streaming platform rose to nearly 95 million in the last quarter, counteracting significantly lower revenue in the pandemic-hit parks segment.
“The streaming business is the perfect home stay story and provides stability for the company during the shutdown,” Federated Hermes portfolio manager Steve Chiavarone told CNBC’s Trading Nation on Wednesday.
Chiavarone said investors are also pricing in high expectations for a post-pandemic recovery.
“They are in this reopening phase where theme parks, cruises – all of these are activities we expect for the next year or so – are returning. This diversified business model is paying off,” said Chiavarone.
Netflix’s subscriber base dwarfs that of Disney +, but New Street Advisors founder Delano Saporu points to the new content and strong growth to explain the stock’s high value.
“You saw how you beat your four year old subscriber [projection] in 14 months, “he said in the same interview.” They’ve also released new content, the new Star Wars series is out in May and they have some Marvel series in June as well. So investors are looking for this original content. They appreciate that. “
The combination of a strong streaming offering and a future reopening is the recipe for success, said Chiavarone.
“It’s a perfect example of a company using the pandemic to invest in technology and become more productive and stronger in the future,” he said.
Disclosure: New Street Advisors holds DIS.
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