The Chinese economy may be slowing down, but don’t tell that to Walt Disney Co (NYSE:DIS). The Disney Shanghai park just opened, and it already needs to expand to keep up with excess demand.
With subscriptions to the cash cow of ESPN is slow decline, this is just the sort of news shareholders in the DIS media empire want to hear.
As much as the studio entertainment division gets all the glory with global hits like Star Wars: The Force Awakens, the company’s media networks and parks & resorts businesses are far larger.
Since cord cutting is weighing on the media networks, parks and resorts needs to up its game.
A Long-Term Tailwind for DIS Stock
And so reports that DIS is developing plans for further investment in Disney Shanghai is a good omen for Disney stock. Here’s CEO Bob Iger, according to The Hollywood reporter:
“We’re already building to expand as we speak. We will continue to expand upon what is on the opening day menu … China obviously represents incredible potential for The Walt Disney Company, in the near term and in the long term, because of the size of this market … Nothing has the impact —nothing creates as strong a connection to our stories, brands and characters — like a theme park experience.”
The $5.5 billion park opens Thursday after more than two decades in the making.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
