The hype for Disney (NYSE:DIS) is growing as it plans to release its streaming service, Disney Plus, in the latter half of 2019. Shares have climbed 29% over the past three months as of close on June 20.
The company has railed off tremendous box office success with its Marvel and Lucasfilm properties. It appears that Avengers: Endgame is poised to break Avatar’s global record at the box office, albeit with the aid of a sneaky re-release.
A recent note from Morgan Stanley boosted sentiment once again. The note projected that Disney Plus would reel in approximately 130 million subscribers by 2024. For reference, the streaming giant Netflix currently boasts about 150 million subscribers.
This may seem like an optimistic projection, but Disney’s impressive content trove is worth believing in.
Marvel properties have been a huge success at Netflix, and this will come to an end as Disney will offer any and all Marvel content on its streaming service. Its monster acquisition of 20th Century Fox will give Disney access to a massive catalogue of content. Some of the franchises include Alien, Die Hard, Home Alone, and popular television shows like Modern Family, This is Us, and Empire.
Disney stock boasted a P/E TTM of 16 as of this writing, making it an attractive value play relative to industry competitors. Shares last had an RSI of 66, which puts Disney close to technically overbought territory. However, investors should factor in some leeway considering the broader rally for the U.S. stock market.
Disney has monster long-term growth potential and is well worth a look ahead of its streaming service release.
