The Walt Disney (NYSE: DIS) stock price bounced sharply after Disney+ has gone live. The share price is currently trading around the highest level in history. The shares are up 36% since the beginning of this year. Strong financial growth in the latest quarter along with rosy outlook is supporting the upside momentum.
In addition, higher than expected Disney+ subscribers growth is adding the bullish sentiments. Its Dsiney+ service is likely to challenge other big players like Apple TV Plus (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), and HBO Max (NYSE: T).
DIS has set a low price of $6.99/month; the platform also offers a triple bundle – including Hulu and ESPN Plus – for $12.99/month.
Disney+ Adds to The Walt Disney Stock Price
Walt Disney announced that it has passed 10M subscribers on the first day of the launch of Disney Plus. Meanwhile, analysts were expecting the company to reach 10 million subscribers by the end of this year. Disney has previously announced that they are expecting to reach 90M subscribers in the next five years.
The company is working on the strategies for expanding the reach of its new streaming services. It has announced a year free of the service for Verizon customers. It is broadening device support to nearly every platform: Android, Apple OS, Roku, Fire TV, etc.
Disney believes that the new platform is the future of the company. It will be the home of Marvel, Star Wars and Pixar. The company is also building several original shows and movies.
Disney+ Could Accelerate Revenue Growth
The company has generated substantial revenue and earnings growth in the latest quarter. Its revenue grew 34% year over year to $19.1B in the final quarter of 2019.
Full-year revenue enlarged 17% from the previous year period. The launch of Disney+ service is likely to accelerate the revenue base. This is because of the higher than expected growth in the subscriber base. Overall, The Walt Disney stock price is backed by strong future fundamentals.