Disney members welcome guests to the Magic Kingdom Park at Walt Disney World Resort.
(Photo by Kent Phillips / Walt Disney World Resort via Getty Images)
Disney shares surged more than 11% on Monday after pharmaceutical makers Pfizer and BioNTech reported positive results from their Covid-19 vaccine testing, prompting investors to return to travel stocks.
Traders have spent the past months flocking to tech stocks that benefit from the people at home, such as Zoom Video and Peloton. But after pharmaceutical companies announced their vaccines were more than 90% effective in preventing Covid-19 among those with no previous evidence of infection, investors seemed to be Take a step back from high-flying names and flock to companies that will benefit from a reopening economy.
Disney has continued to feel the impact of the Covid-19 pandemic, with its parks and studio entertainment segment suffering heavy damage. The pandemic also forced the company to lay off 28,000 employees at parks, experience and consumer products by the end of September.
The company said in its fiscal third-quarter earnings report that it lost $ 3.5 billion in operating income from parks closed for the quarter. Parks, Experience, and Products segment revenues, which include cruises, resorts, and merchandise, fell 85% to less than $ 1 billion in the quarter. The company’s studio entertainment revenue also fell 55% in the quarter to $ 1.7 billion.
The company will announce its financial fourth-quarter results on Thursday after the bell ring.
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