Disney (DIS) is dominating at the box office. The entertainment giant is up nearly 30% year to date as “Avengers: Endgame” is vying to replace “Avatar” as the top-grossing movie of all time. And a Disney investor predicts the company will have even more success in theaters.
“Movies are on a run like I’ve never seen, with success from what will be the biggest movie of all time, to just every week or two, another huge, billion-dollar blockbuster. Disney will break all records this year for them,” Ross Gerber, Gerber Kawasaki Wealth and Investment Management CEO, told Yahoo Finance’s YFi PM on Monday.
“Spider-Man: Far From Home” also saw a massive turnout over Independence Day. The superhero movie delivered a $185 million debut in North America over its six-day holiday opening, according to Box Office Mojo.
Gerber also sees a potential 50% upside for the company, as Disney gears up to unveil its streaming service, Disney+. “We think Disney+ is going to sign up tens of millions of people right off the bat at launch, with such a strong content library and so many good movies to choose from,” he said.
Disney+ is set to launch on November 12 for $6.99 a month, undercutting Netflix’s (NFLX) $8.99 monthly price for its basic plan. And the move could play a major role in Disney’s short-term growth strategy. “By going direct to consumer, especially on a global level — there is no reason why Disney can’t have as many subs as Netflix. I don’t think Netflix’s content is better than Disney’s content. And I think Disney appeals to families,” Gerber said.
McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter: @McKenzieBeehler