Disney stock down since 'Star Wars.' Here's why
- 8 years ago
The Force is certainly with "Star Wars: The Force Awakens."
The firm broke opening weekend records with its $248 million box-office haul on the first weekend and is gunning for "Avatar," "Titanic" and "Jurassic World" to be the biggest global money-maker in history.
Understanding how a company can have a "Star Wars" sized hit product - and the stock still skids - teaches a number of enormous lessons for investors, including:
* "Star Wars" is a small part of the Disney empire.
The small relative size of Disney's film business explains why every extra $100 million in "Star Wars" box office only adds 2 cents a share to Disney's fiscal 2016 earnings per share, says Goldman.
Disney has been a massive winner - in part - because investors have already anticipated the company's ability to refresh the "Star Wars" franchise and maximize profits from all its franchises.
The firm broke opening weekend records with its $248 million box-office haul on the first weekend and is gunning for "Avatar," "Titanic" and "Jurassic World" to be the biggest global money-maker in history.
Understanding how a company can have a "Star Wars" sized hit product - and the stock still skids - teaches a number of enormous lessons for investors, including:
* "Star Wars" is a small part of the Disney empire.
The small relative size of Disney's film business explains why every extra $100 million in "Star Wars" box office only adds 2 cents a share to Disney's fiscal 2016 earnings per share, says Goldman.
Disney has been a massive winner - in part - because investors have already anticipated the company's ability to refresh the "Star Wars" franchise and maximize profits from all its franchises.