The Walt Disney Company has been expanding and now includes some big companies as ESPN, ABC, and Marvel Studios, apart from many theme parks and their own TV channel. This means that the company has diversified its profile, which in turn may make them an attractive investment. But, still, there are many aspects to consider.
Disney stock has often attracted the interest of investors thanks to their continuous interest in development and growth. Plus, considering their long history, this American company has succeeded in creating a name for themselves and leading the market of entertainment.
Parts of the company have suffered due to the pandemic in 2020, and have only recently started to recover, which has been reflected in their stock price. While 2020 saw a huge decrease in the price of Disney shares, the New Year brought a strong recovery, while the price started to decrease again after a peak in March.
Disney is considered a safe investment for long-term investors, their 100 years of experience make them a reliable option for those who want to own a stock that may be seeing growth in the future.
We have created a guide to buying Disney stock step by step, as well as different analyses to keep in mind when deciding if Disney shares are right for you as a trader, as well as fitting in your investment portfolio. Lastly, we will help traders decide if this is the right moment to buy Disney shares.
What you need to know about Disney stock
Disney characters and theme parks are quite famous and everybody knows them. Their TV channel has also become a favorite one and bringing in companies like Marvel and ABC has given the company new opportunities for success.
However well you may know Disney and their movies, shows, and characters, when it comes to deciding if Disney is the right company for you to invest in, there are many other aspects to consider.
Traders need to look at the company’s income, debt, management, and revenue. They have to look at the company not as customers but as investors. They need to know how the company operates and where the money comes from. Additionally, they need to consider the competition and the challenges the company has to face in the future, and where they may be headed.
This will give investors a better idea about the prospects the company has to make a profit.
Current situation of the Walt Disney Co.
The pandemic in 2020 had a devastating effect on Disney. The company had to close 12 theme parks worldwide and lay off almost 32.000 employees. Their cruise line had to cancel all trips until the middle of 2021 but most Disney operations started to pick up again from February 2021, showing strong signs of recovery.
Disney operations are picking up, but that’s not all. Their shares have also started to show a rise in their prices, recovering after a downswing movement all of 2020, and promising to grow even more as their company strategies start to go back to normal. So, how to own Disney shares? The process is easy and straightforward. We’ll give you step by step.
How to buy Disney stock step by step
The easiest and fastest way to buy Disney stock is to use a broker. Your broker will give you access to the market and provide you with an online trading platform from which it’s easy to buy stocks.
How to do this?
First of all, you need to find the perfect broker for you. And while there are so many brokers to choose from, finding the perfect one is a task of utter importance. Your broker must match your trading style and level of expertise, offering the services and features you need to achieve the success you’re hoping for.
Traders should always make sure their broker is regulated, keeping their information and their money safe. Some brokers are registered with several regulatory bodies, making them more trustable.
Other aspects should be kept in mind as well, like the costs, since brokers ask for different commissions and fees. Also, their features and services may play an important role for brokers looking for particular options, like social trading or certain research graphs and charts. Finally, traders should check out the brokers’ online trading platform and how reliable their customer service is.
Once you decide on one broker that suits your trading style and will help you achieve your financial goals, it’s time to open an account. The whole process is very easy and straightforward, the broker will require users to input their personal information and provide some kind of ID in order to verify their account. Verification takes from a few hours to a couple of days.
The next step is to deposit some money in your brokerage account. Traders can use their debit or credit cards, or services like PayPal.
All ready? Now you can start investing in Disney stocks. Decide how many shares you want to buy. This will depend on how do the stock fits in your portfolio. Experts recommend not to use more than 10
% of your total capital for investment. Keeping a diversified investment portfolio is the best way to keep risk manageable.
Buy Disney stock directly
Disney has a partnership with Computershare, which allows investors interested in buying Disney shares directly without having to commit to a broker. Traders can buy and sell Disney stock very easily over the phone or online.
Computershare sets up a minimum of 200 dollars to invest the first time, with a regular minimum of at least four times. They also ask for fees per transaction, as well as an initial set-up fee.
Overview of the company
Disney was founded in 1923 and it currently has its headquarters in Burbank, California.
The Walt Disney Co. is a family entertainment and media company based in the US but with operations all around the world. Their different areas include theme parks, resorts, a cruise line, studio entertainment, a media network, a TV channel, and a line of products, among several other things.
Their main (and original) theme park is in Florida, with others in California, Hawaii, as well as several in Europe and Asia.
Their Studio Entertainment produces live-action and cartoon content under the Walt Disney Pictures name. They have recently acquired Pixar, Marvel, Lucasfilm, and Touchstone.
Disney also produces visual and literary products that are distributed all around the world, while also publishing games, books, and comics. Additionally, they distribute their brand merchandise directly on retail or wholesale.
Final thoughts on buying Disney stock
Buying Disney stock, or any stock for that matter comes along with a certain amount of risk. That’s why it’s important to understand the operations of the company as well as learn about their finances.
Disney stock experienced a massive decrease in 2020, but since then they have recovered with the price of their shares going up 140%. The price of Disney stock reached a maximum in March 2021, and since then the price started to go down, opening chances to interested investors to buy Disney stock.
It still not clear if the stocks are going to enter a bull market, traders will have to decide if the risk is worth it.