Disney Parks might be closed a little longer than you probably expected.
What’s the news:
- Disney Parks might not reopen its parks until Jan. 1, 2021, according to MarketWatch. UBS Analyst John Hodulik, who often comments on media investments, said all aspects of Disney are at risk because of COVID-19, from their movie releases to their theme parks.
- Hodulik said the company’s theme parks might feel pressure from investors even beyond that open date due to the new normal at the park.
- Hodulik said: “(T)he economic recession plus the need for social distancing, new health precautions, the lack of travel and crowd aversion are likely to make this business less profitable until there is a widely available vaccine.”
- He added the parks may “regain their recent operating cadence in (about) 18 months, coinciding with the earliest expectations for a widely available vaccine for COVID-19.”
- Concerns over the parks reopening has led to a 3% drop off in the stock prices.
Some context about Disney Parks reopening
- Disney is currently allowing some bookings for as early as June 1. Third-party websites like Trip Advisor suggest the park might not allow reservations until July 30, too, according to Inside the Magic, a Disney news and rumors website.
- Disney closed down its parks back in March when the coronavirus pandemic began to spread farther throughout the United States. The latest reports suggested the parks could remain closed indefinitely.