2020 has certainly been an interesting year for The Walt Disney Company.
All of its theme parks around the world closed due to the global pandemic, some having to close a second time, and several Disney movies have been redirected to releases on Disney+ as opposed to theatrical releases. But this morning, Disney stock surged.
According to Variety, the U.S. markets surged this morning following this weekend’s events and Pfizer’s announcement today that “its COVID vaccine was more effective than expected.” Before the markets opened today, Pfizer and BioNTech SE announced that “a COVID-19 vaccine candidate they developed was found to be more than 90% effective in preventing COVID-19 in participate without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis.”
Safety data is, however, continuing to be collected by the companies.
Following this announcement and the weekend’s events, Disney stock surged this morning and opened up more than 14%, “as investors eyed a bigger reopening of the company’s theme parks.”
But Disney wasn’t alone. Stocks of theatre chains, like AMC Entertainment, Six Flags Entertainment, SeaWorld Entertainment, and others have also gained in early trading. Some media and telecom stocks were also showing gains, including Fox Corp., Discovery, and others.
But, “stay at home” stocks, which have “benefitted from coronavirus lockdowns,” like Netflix, Zoom, and Peleton saw a decrease this morning in early trading. Others, like Amazon and Facebook had also dropped slightly.
It seems with the news of this vaccine’s preliminary success, some are preparing for potential greater reopenings of theme parks and other activities, causing those activities that gained a lot of traction during quarantine to drop in terms of trading.
Things are constantly changing in Disney World, with the stock market, and with the world in general, so it’s unclear how long this increase will last, but we’ll certainly keep an eye out for more news as it relates to Disney and their stock. We anticipate we’ll learn more about Disney’s overall financial situation and other updates during Disney’s full year and fourth quarter earnings report, set to occur later this week.