Disney is one of the biggest names in entertainment. They have a huge and diverse movie franchise, tons of toys, clothes, and other apparel, not to mention amusement parks all over the world. And with their recent earnings statement, they have shown that they are now even more popular than ever before.
On Tuesday, shares rose about 4.4 percent after the news that earnings were much higher than expected. The stock is now worth over $98 per share, and it looks like the company is on firm ground to keep improving upon this. Higher numbers of visitors to amusement parks, and the popularity of products that go along with the movie “Frozen” helped to make this one of Disney’s best quarters ever. Disney is comprised of five different divisions, and each one reported big profits.
There are other good things coming from Disney in the future. In the spring of 2016, they plan on opening a new theme park in Shanghai. It was originally planned for late 2015, but the company plans on adding a few more attractions to the park before they open. Based upon numbers from the United States parks, this is a good idea as the extra time and price will be worth it as Disney is hotter now than ever before. More attractions means more popularity and higher ticket prices at the same time. If this popularity can carry over into the Chinese market, then this is a smart move by Disney. It’s a risk, but one that will most likely payoff for them.
Short term traders need to know about these kinds of big long term plans, and should be able to adjust their strategies in the event that any changes occur. Between now and when the park starts to bring in money for the company, a lot will happen. They definitely have enough revenue to not be deterred by the new park’s price tag of an estimated $5.5 billion, but it could take some time for this cost to be completely offset. Still, the revenue number is currently at $13.39 billion, and even if the newest park is a bust, the company is still in great financial shape. Traders should keep an eye on these numbers and act appropriately. Little adjustments for day traders will be needed, but it should be kept in mind that there is currently a strong upward trend, and it can be dangerous to go against this. If you do want to go counter the trend, ultra short term trades, such as with 30 or 60 second binary options will be your best choice as these help you to split up exposure and limit risk down to a miniscule size.
For traders, there is an important lesson to be learned here. If another huge hit like “Frozen” comes along, there is potential for the company to repeat this performance, and traders need to know that this can happen. If you have this knowledge, you can act on it and replicate the experience that those who saw big profits from Disney recently have seen. Furthermore, if there are other businesses with similar numbers that have a product similar to “Frozen” in popularity, you can jump on the action and hope that something similar in nature occurs for you. Lessons like this are a great way to increase your skills in the short term marketplace. It doesn’t even have to be in the entertainment industry if the company’s numbers are of the same health as Disney’s are. Things like this happen all over the market, especially among bigger, popular companies with high trading volume.