Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Disney’s Big Decade
One of the market leaders of the past decade was media giant Walt Disney Co DIS.
Disney ended the 2000s with a blockbuster deal to buy Marvel Entertainment for $4.2 billion, an acquisition that closed in December 2009 and would pay dividends throughout the 2010s. Two years later in 2012, Disney announced a $4 billion buyout of Lucasfilm, the owner of the Star Wars franchise. Disney closed the decade with one final major acquisition, its largest one of the decade. Following a bidding war with Comcast Corporation CMCSA, Disney acquired the majority of 21st Century Fox’s TV and movie assets in 2019 for a whopping price tag of $71.3 billion.
The final headline of the decade for Disney will likely determine the stock’s direction in the 2020s. Disney launched its Disney+ streaming service in November of 2019 in an effort to transition its media business model away from linear TV in favor of an over-the-top subscription service.
Disney shares started the 2010s trading at around $32. The stock dipped as low as $28.19 by late 2011 on concerns about rising streaming competition from Netflix, Inc. NFLX, its lowest point of the decade. From that point forward, Disney shares marched steadily higher, reaching $122 by mid-2015. After nearly four years of trading between around $90 and $120, Disney broke out to new all-time highs in early 2019 ahead of the Disney+ launch.
2020 And Beyond
Disney reached its decade high of $153.41 in November after the successful Disney+ launch.
Though the stock has since pulled back below $140, Disney investors did very well in the 2010s. In fact, $100 worth of Disney stock in 2010 would be worth about $490 today, assuming reinvested dividends.
Looking ahead, analysts expect Disney to continue to march higher in 2020. The average price target among the 24 analysts covering the stock is $160.50, suggesting 16.3% upside from current levels.
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