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.
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.
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."
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.