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Associated press
- Disney shares climbed more than 10% Friday morning to a record high after the company released details of its new streaming service, Disney Plus.
- The company announced that the "Star Wars" series and the first 30 seasons of "The Simpsons" would be available for the first broadcast.
- Watch the live Disney trade.
Disney shares rose more than 10% Friday morning, reaching a record $ 130.90, after the company disclosed the details of its new streaming service, Disney Plus, at Investor Day. society on Thursday.
The new service will compete with Netflix, which dominates the space. Disney plans to launch the service in November for $ 6.99 a month, a significant discount from Netflix's monthly rates, ranging from $ 8.99 to $ 12.99. The company says the content will include Marvel content, "Star Wars", Pixar and National Geographic.
Disney expects the service to include 25 original series and 10 films and specials in the first year, in addition to more than 400 titles from its library. The entertainment giants expect 90 million households to subscribe to this service, which should be profitable in 2024.
John Hodulik, an analyst at UBS, was supportive of the prospects of the platform's subscribers, but indicated that questions remained about the extent of lost license fees for Disney.
"Without providing specific EPS guidance, we believe that management has provided enough detail to help investors model the short-term earnings trajectory while showing confidence in the long-term opportunities offered to subscribers," he said. said Hodulik. The shares exceeded Hodulik's price target of $ 128.
Wall Street is generally optimistic about Disney, with 70% of analysts holding a "buy" rating. The company is expected to release its first quarter results on May 8.
Disney was up 17% this year after Friday's gain.
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