Why Disney Stock Soared 25% in January
Shares of entertainment giant The Walt Disney Company (NYSE: DIS) zoomed up by 25% in January, according to data provided by S&P Global Market Intelligence. The entertainment company benefited from the success of Avatar: The Way of Water, and investor confidence in the value of streaming services generally was bolstered by news that Netflix had added millions of new subscribers in the fourth quarter.
Disney stock has been taking investors on a wild ride worthy of one of its own hit films since the pandemic started. Its various business units have been moving up and down at different times, but the company as a whole has been showing progress.
It has taken the title of streaming king from Netflix several times as the streaming operator with the most subscribers, and the pattern seems to be that the crown goes back and forth between them. However, Disney has been booking soaring bottom-line losses from its streaming business as it scales it up. The rollout has been going according to plan, but investors are growing weary of watching the company pour money into a seemingly bottomless pit.
Source Fool.com
