Disney is a company that does best when economic conditions are positive. So recently, the stock simply hasn't been doing as well as many people had expected. After all, global economic conditions are causing less people to visit their theme parks and spending on entertainment is slowing. One of the biggest drags on Disney has been ESPN. However, the company made a big announcement with regard to ESPN recently that excited investors. Today, we'll talk about what that announcement was, how the market is reacting to the news, what we can expect to see from Disney moving forward, and how binary options traders can take advantage of the trends. So, let's get right to it…
Disney Makes A Big Announcement With Regard To ESPN
ESPN was one of the larger money drivers for Disney over the years. Unfortunately however, the sports network has been struggling recently, and for good reason. As more and more consumers are watching their programming online, less people are willing to spend the extra money for cable packages that include ESPN, and that's weighing heavy on Disney's profits from the network. So, the company had to come up with something to fix the problem, and recently, it announced a solution.
The biggest problem with ESPN is that the network is bundled with other networks. So, in order for consumers to get the network, they need to pay for multiple networks, many of which, they simply won't watch. As a result, Disney announced that it is considering offering ESPN as an a-la-carte network. This way, consumers can pay one low fee and have access to the network. While some analysts believe that this isn't going to do very well, others, including myself believe that this is an overwhelmingly strong move for Disney and it will likely lead to increased subscriptions on the ESPN network.
How The Market Is Reacting To The News
As binary options traders, we know that the news moves the market. Any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of the company's stock. Adversely, negative news will lead to losses. In this particular case, it seems as though investors are excited about Disney's plans. Shortly following the announcement, we saw strong upward movement on the stock. That upward movement is continuing today. Currently (1:52), Disney is trading at $103.19 per share after a gain of $0.55 per share or 0.54% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from Disney. As economic conditions around the world continue to work toward improvement, consumers are more likely to spend money on entertainment, and this will ultimately lead to gains for Disney.
How Binary Options Traders Can Take Advantage Of The Trends
Moving forward, I believe that we will continue to see growth out of Disney. As a result, binary options traders should watch the stock for strong call option opportunities. This will allow you to follow the trends up to the profits.
What Do You Think?
Where do you think Disney is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]