[ad_1]
Members of the Disney cast welcome guests to Magic Kingdom Park at Walt Disney World Resort.
(Photo by Kent Phillips / Walt Disney World Resort via Getty Images)
Disney shares rose more than 11% on Monday after drugmakers Pfizer and BioNTech reported positive results from their Covid-19 vaccine trial, leading investors to return to high-density stocks of trips.
Traders have spent the last few months racking up tech stocks that have benefited from staying home like Zoom Video and Peloton. But after drug companies announced their vaccine was over 90% effective at preventing Covid-19 among people without proof of prior infection, investors appeared to be backing down from high-profile names and rushed to them. companies that would benefit from the reopening of the economy.
Disney continued to feel the impact of the Covid-19 pandemic, with its parks and studio entertainment segments taking heavy losses. The pandemic also forced the company to lay off 28,000 employees in its parks, experiences and consumer products division at the end of September.
The company said in its fiscal third quarter earnings report that its operating income was affected by $ 3.5 billion in the quarter. Revenues in the Parks, Experiences and Products segment, which includes cruise, resorts and merchandise, fell 85% to below $ 1 billion in the quarter. The company’s studio entertainment revenue also fell 55% in the quarter to $ 1.7 billion.
The company is expected to release its fiscal fourth quarter results Thursday after the bell.
Subscribe to CNBC on YouTube.
[ad_2]
Source link