The Shanghai Disney Resort will not only translate into higher earnings, but it can also give a boost to the company's brand in China. This could result in better performance in consumer products, movies and television operations. It's a big opportunity.
Disney will, however, face tough competition. Its rival Comcast's Universal Studios will pump $500 million in capital expenditures into further develop its theme parks.
In terms of market cap, Comcast is slightly smaller than Disney -- the difference in their market cap is just $5 billion -- but its Universal Studios unit is significantly smaller than Disney's parks and resorts segment. According to their comparable quarterly results, the growth of Disney's theme parks segment has easily outpaced growth at Universal Studios.
At the time of publication, the author held no positions in any of the stocks mentioned.
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