Disney Shares at Record on Path to Theme Park Reopening

Disney gained, touching a record, after the California government said on Friday that theme parks could reopen on a limited basis as soon as April 1.
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Walt Disney  (DIS) - Get Report shares touched record levels after the California government said on Friday that theme parks could reopen on a limited basis as soon as April 1.

Disney’s theme park revenue plunged 53% to $3.6 billion in the quarter ended Jan. 2.

The Burbank, Calif., company’s shares recently traded at $200.84, up 5.7%, after earlier touching $201.59. 

They have soared 51% over the past six months, as investors grew optimistic about vaccines and economic recovery.

The stock also has benefited from the Disney+ streaming service putting up stellar subscriber numbers -- 95 million and counting. And the company is expanding its streaming.

For theme park reopenings California has put them in different categories, depending where the COVID threat is strongest.

For now, Orange County-based Disneyland is in the category that’s closed. But if COVID cases keep dropping at their current pace, Disney could enter the category of 25% capacity by late April, The New York Times reported.

Jim Cramer: What Disney Stock Says About the Overall Market

Disney said last year that it was financially unworkable to open parks below 25% capacity. Disney didn’t offer a timeline last week.

But “we are encouraged that theme parks now have a path toward reopening this spring,” Disney President Ken Potrock said in a statement.

Other theme-park stocks rose, too. Six Flags Entertainment  (SIX) - Get Report recently traded at $50.66, up 7%; SeaWorld Entertainment  (SEAS) - Get Report at $52.27, up 6.5%; and Cedar Fair  (FUN) - Get Report at $51.58, up 2.3%.

B. Riley analyst Eric Wold reiterated his buy ratings on all of them. He lifted his price target for Six Flags to $60 from $50, for SeaWorld to $65 from $53 and for Cedar Fair to $70 from $57. 

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