Will Disney Stock Crash in 2021?
These are interesting times for the House of Mouse. Shares of Walt Disney (NYSE: DIS) are less than 8% away from hitting all-time highs as of Thursday's close. The success of Disney+ has been stellar, but that's just 7% of the media giant's business. Adding Mickey pretzel salt to the wound, it would be even less of the revenue mix if the rest of Disney's businesses were performing better.
Disney is in a rut, even if the stock price suggests otherwise. Its theme parks continue to lose money. The studio entertainment arm that cranked out all six of this country's top-grossing films last year isn't playing nice with the local multiplex right now. Its media networks segment is holding up nicely, but Disney has yet to prove that it can survive the cord-cutting revolution.
This isn't Disney at its best, and that makes the consumer-facing bellwether a risk in the year ahead. We're in a recession. We're in a pandemic. Disney could crash next year. Let's go over some of the reasons why a sharp decline in price isn't likely to happen in 2021.
Source Fool.com
