Please ensure Javascript is enabled for purposes of website accessibility

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

By Joe Tenebruso - Mar 8, 2021 at 5:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Guests may soon return to one of the entertainment giant's iconic amusement parks.

What happened 

Shares of Walt Disney (DIS 3.33%) jumped 6.3% to a closing high of $201.91 on Monday after health officials said theme park companies could resume operations in California beginning on April 1.  

So what

Coronavirus-related park closures have weighed heavily on Disney's financial results. The media conglomerate's revenue fell 22% to $16.2 billion in its fiscal 2021 first quarter due largely to a 53% decline in sales in its parks, experiences, and products segment. 

A person is pointing to an upwardly sloping line.

Walt Disney's stock price rose sharply on Monday. Image source: Getty Images.

Yet Disney could soon begin to see a recovery in this key business segment. California's announcement paves the way for Disneyland to potentially reopen on April 1, albeit with attendance restrictions and heightened safety requirements.

"We are encouraged that theme parks now have a path toward reopening this spring, getting thousands of people back to work and greatly helping neighboring businesses and our entire community," Disneyland president Ken Potrock told CNN. "With responsible Disney safety protocols already implemented around the world, we can't wait to welcome our guests back."  

Now what

Several promising coronavirus vaccines are helping to reduce the spread of COVID-19 in the U.S. and other areas of the world. Health officials, in turn, are starting to ease social distancing mandates. This is all great news for companies like Disney, which stand to benefit as the pandemic subsides. Savvy investors know this, and they bid up the entertainment titan's shares to new highs on Monday.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$105.83 (3.33%) $3.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.