Walt Disney Co. (DIS) is planning to invest $30 billion to upgrade and expand its existing theme parks in the U.S.
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CEO Bob Iger said that Disney plans on “investing more than $30 billion in our theme parks in Florida and California to enhance our offerings, create jobs, and support the U.S. economy.” The big investment comes as Disney faces competition from Universal Studios’ new Florida theme park called Epic Universe, and the addition of the “World of Nintendo” rides at Universal Studios Hollywood in California.
Disney plans to spend the $30 billion over the next decade, though what exactly the investment entails is not yet known. Analysts say that the amount of money being spent on Disney’s theme parks and the timeline for the investment are aggressive.
Prioritizing Disney World
Iger has made it clear that Disney’s theme parks are a priority and a never-ending investment for the entertainment giant. Both Disneyland in California and Disney World in Florida became a drag on the company’s earnings during the Covid-19 pandemic when they were forced to close or operate at reduced capacity.
However, both theme parks are now growth engines for Disney once again, and CEO Iger says the company plans to ensure their continued success through investments. “Our focus must always be on building for tomorrow, as much as it is on managing for today. That eye to the future and driving growth is central to the important work we’ve done advancing our four strategic priorities,” he said.
DIS stock has risen 9% this year.
Is DIS Stock a Buy?
The stock of Walt Disney Co. has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy and three Hold recommendations assigned in the last three months. The average DIS price target of $134 implies 11.41% upside from current levels.
