Prediction: Here's Why Disney Stock Could Get a Big Boost This Winter
Walt Disney (NYSE: DIS) could be poised for a big boost this winter, as it is scheduled to release the sequel to one of the biggest blockbuster films ever. Avatar set the record for the highest-grossing film at $2.8 billion when it hit the big screen in 2009.
Avatar 2: The Way of the Water will be coming out in theaters this December, setting Disney up for a potential billion-dollar windfall. That could be a significant boost for the stock, down 54% off its high.
The sequel to Avatar could generate more than $1 billion in revenue for Disney. Typically, studios and theaters split box-office revenue 50/50. Using that assumption, if Avatar 2 generates similar revenue as the original, Disney's share could be upwards of $1.4 billion. That would be a meaningful injection for Disney, which held $13.3 billion in cash on its balance sheet and $46.6 billion in long-term debt.
Source Fool.com
