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This is the second consecutive Monday that we have woken up to positive news regarding a potential COVID-19 vaccine. This week it was from pharmaceutical company Moderna that announced that early data shows their vaccine is 93% effective. This followed last Monday’s news from Pfizer that their vaccine had a 90% efficacy rate. For context, the US government has set the effectiveness rate threshold at 50% to qualify for an emergency use authorization. So these preliminary numbers from Pfizer and Moderna are surprisingly high.
Just like last week, today’s news has raised the stock price of many companies, including Disney. Shares of Disney jumped and ended the day at $ 144.67 per share, an increase of $ 6.31 per share.
Although the entire market posted positive returns today, Disney is particularly vulnerable to news regarding vaccines and treatments. Disney’s streaming service, Disney +, has likely benefited from the various lockdowns enacted since March, as people are being asked to stay home, much of their business has been hindered.
At some point last year, all Disney parks were closed due to COVID-19 and while many have reopened, the Disneyland Resort in Anaheim and Disneyland Paris are currently closed. The other parks all operate at reduced capacity, with many hotels closed and restaurants and shows closed. Disney’s entire cruise line is being closed and are expected to remain closed for the foreseeable future.
The income from their parks and cruises has always been a reliable and steady stream. So investors are very happy with any news that indicates the opening of these sectors forever.
The pandemic has also kept cinemas closed, so the revenue from big hits like 2019’s Toy Story 4, Aladdin, Lion King and Star Wars: Rise of Skywalker, this year is negligible. Another reason Disney’s future is strongly tied to the end of this pandemic.
The DisInsider will be monitoring this story and any seemingly non-Disney news that directly affects Disney moving forward. So keep checking back as we keep you updated.
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