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Disney’s stock surges to give the Dow a near 40-point boost after ‘surprise’ Disney+ subscriber data

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Shares of Walt Disney Co. DIS, -0.16% surged 5.4% to pace all of the Dow Jones Industrial Average’s DJIA, +3.44% premarket gainers Thursday, in the wake of the media and theme park operator’s announcement that paid subscribers for its Disney+ streaming service surpassed 50 million. The stock’s implied price gain would add about 37 points…

Shares of Walt Disney Co.
DIS,
-0.16%

surged 5.4% to pace all of the Dow Jones Industrial Average’s
DJIA,
+3.44%

premarket gainers Thursday, in the wake of the media and theme park operator’s announcement that paid subscribers for its Disney+ streaming service surpassed 50 million. The stock’s implied price gain would add about 37 points to the Dow’s price, while Dow futures
YM00,
+1.50%

were recently down 14 points. J.P. Morgan analyst Alexia Quadrani reiterated her overweight rating and $140 stock price target, saying she was “impressed” by the surprise announcement of Disney+ subscribers, and that it’s clear that information was provided as analysts have been lowering estimates across other areas of Disney’s business. “We view Disney+ as a core driver to the company’s extensive ecosystem of consumer touchpoints, which we believe will benefit the Parks and Studio once normal operations resume,” Quadrani wrote in a note to clients. The stock has dropped 30.1% year to date through Wednesday, while the Dow has declined 17.9%.

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