The happiest place on earth just got more expensive.
In response to strong demand, Disney hiked the weekend ticket prices for Disneyland and Disney California Adventure parks. The company raised prices up about 4.5 percent, to $96 dollars for a single-day pass, and 10 percent to $150 for the “One Day Parkhopper” pass. So much for that soft economy. Apparently, ordinary Americans cannot live without ESPN and Disney.
The move is just the latest in a string of good news for the Mouse House, and some market watchers see more gains to come.
“This is a growth story,” said Gina Sanchez of Chantico Global. “They’ve definitely proven that they can continue to make money even with the ebbs and flows of the economic cycle.”
Disney shares are up nearly 250 percent in the past five years, more than double the return of the Dow Jones Industrial Average, but they have stalled with the market in the past couple of weeks. And according to one chart watcher, things are looking a little precarious.
“The stock has been above its 200-day moving average for two and a half years now,” said Rich Ross of Auerbach Grayson. “I know the lines at Disney are long, but this is ridiculous,” he joked.
Ross also noted Disney’s significant outperformance to the XLY or the Consumer Discretionary sector, of which Disney is the largest component. According to Ross, based purely on the technical, Disney should pull back to its sector.
“I’m looking for a significant pullback here,” said Ross.