After unveiling a surprisingly detailed plan for its direct-to-consumer future, the Walt Disney Company is having a moment.
Disney shares hit an all-time high of $130.71 in early-morning trading as excitement over the company’s Disney+ streaming service hit fever pitch, and analysts weighed in on the impressive slate of content that will debut on the Netflix-rivaling platform later this year. Netflix stock, meanwhile, tumbled about 3% after the opening bell this morning.
So, yes, it’s a good day to be Disney, but will the high times last? While that remains to be seen, the economic realities of Disney’s strategy will no doubt set in sooner rather than later. In an note to investors this morning, analyst firm MoffettNathanson expressed lots of enthusiasm for Disney’s plan, but noted that costs associated with the streaming platform could negatively affect company profits for the next few years.
The streaming wars are officially on.
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