T-Mobile Team-Up Just Gave You Another Reason to Invest in Disney

NYSE: DIS | Walt Disney Co. News, Ratings, and Charts

DIS – Don’t be tempted to divest your Disney (DIS) stock due to concerns in China, as theme parks are just part of Disney’s modern business model.

World-famous Walt Disney < NYSE:DIS> has been known for generations as a provider of magical theme park experiences. At the current share price, DIS stock should be considered a strong buy.

Why has the stock declined sharply from its peak price? There’s been a broad-market sell-off, but a recent development abroad may have caused some panic selling as well.

We’ll delve into the details of that in a moment – but have no fear, as Disney’s theme-park issues could be offset by a powerful partnership with a 5G leader.

What’s Happening with DIS Stock?

DIS stock jumped from $180 to nearly $200 in early 2021, before embarking on a slow but painful decline. By late March of 2022, the stock was down to the $140 area.

This should be viewed as a discount and an opportunity, not as a reason to sell. Disney remains a revenue-generating behemoth, as the company generated a whopping $21.819 million in revenue for the quarter ended Jan. 1, 2022. That result  represents a 34% improvement over the quarter ended Jan. 1, 2021 – not too shabby.

Furthermore, Disney reported that in fiscal 2022, the company’s domestic parks/experiences are “generally operating without significant mandatory COVID-19-related capacity restrictions, such as those that were in place in the prior-year quarter.”

That statement only concerns the U.S.-based theme parks, however. In China, the onset of the Covid-19 omicron variant strain is evidently causing major problems.

“Due to the current pandemic situation, Shanghai Disney Resort, including Shanghai Disneyland, Disneytown and Wishing Star Park will be temporarily closed from Monday, March 21, 2022,” the company announced recently.

The Shanghai Disney Resort will apparently remain closed until further notice as Disney “will notify guests as soon as we have a confirmed date to resume operations.”

Modern Storytelling

That’s unfortunate news – no doubt about it. On the other hand, Disney’s shareholders can be reassured that the company’s business model isn’t entirely reliant on theme park revenues.

Times are changing, and Disney has changed as well. In the 2020s, Disney+ poses a serious threat to streaming content providers.

Now, the threat is even greater as Disney is partnering with telecommunications and 5G giant T-Mobile < NASDAQ:TMUS> for a five‑year innovation partnership.

Specifically, Disney Studios StudioLAB will work with T‑Mobile to “explore new innovations in how entertainment is produced and experienced.” This, evidently, will include discovering “new ways to improve content production” and testing “new forms of immersive experiences.”

That’s vague language, but it’s still exciting to consider what this collaboration will produce. At the very least, we should expect lightning-fast content delivery through T-Mobile’s vast 5G network.

How will Disney Studios StudioLAB and T‑Mobile modernize the art of storytelling? Will it be through virtual reality, and even the metaverse?

Only time will tell, but it’s hard to go wrong with a powerful partner like T-Mobile.

What You Can Do Now

Domestically, it appears that Disney’s theme parks are up and running without major problems. In China, however, that’s not necessarily the case.

Still, this isn’t a valid reason to panic-sell your DIS stock. Indeed, the T-Mobile partnership and the stock’s low price should persuade you to consider a long-term position today.

The stock market can be unpredictable, volatile, and sometimes totally nonsensical. InvestorPlace.com strives to cut through the noise and bring you information on what matters – and how it impacts your portfolio. We deliver thoughtful coverage on everything from stocks to cryptos to pre-IPO investments. So whether you live and breathe breaking stock news or expect your stocks to pay you, InvestorPlace.com has your back.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

DIS shares were trading at $136.59 per share on Monday afternoon, down $2.55 (-1.83%). Year-to-date, DIS has declined -11.81%, versus a -4.77% rise in the benchmark S&P 500 index during the same period.

About the Author: David Moadel

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
DISGet RatingGet RatingGet Rating
TMUSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Read More Stories

More Walt Disney Co. (DIS) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All DIS News