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Why Disney Stock Rose to a New All-Time High Today

By Joe Tenebruso - Feb 22, 2021 at 8:40PM

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The entertainment titan gives investors many ways to win.

What happened

Shares of Walt Disney (DIS 1.64%) climbed 4.4% to a closing high of $191.76 on Monday, as investors rotated into companies that could benefit once the COVID-19 crisis subsides.

So what 

Even as the number of coronavirus-related deaths in the U.S. surpasses 500,000, many people are beginning to look ahead to an eventual end to the health crisis. New COVID-19 cases are declining in many areas of the world as governments ramp up their vaccination efforts. Investors, in turn, bid up the stock prices of companies that stand to profit from a potential post-pandemic recovery.

A person is pointing to an upwardly sloping digital chart.

Disney's share price popped on Monday. Image source: Getty Images.

Disney is a prominent example of such a company. Its theme parks, cruise ships, and movie studios could see their revenues quickly rebound if the travel and entertainment industries experience a post-COVID boom. Meanwhile, its incredibly popular Disney+ streaming service will likely continue to fuel its growth during the remainder of the pandemic and in the years that follow.

Now what

Investors seeking a relatively low-risk way to profit from an eventual return to normalcy would be wise to consider Disney. With its unrivaled collection of brands, characters, and storylines, Disney has proven that it can create value for its customers and shareholders in all manner of economic environments. At the same time, with its business poised to boom once the coronavirus is contained, the entertainment giant could deliver handsome gains to long-term investors.

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The Walt Disney Company
$103.26 (1.64%) $1.67

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