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Disney still has a 50% upside, investor says

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.

Actor Chris Evans attends the premiere of "Avengers: Endgame" on April 23, 2019 in Los Angeles, California. (Photo by Alberto E. Rodriguez/Getty Images for Disney)

“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 shares are up nearly 30% YTD, with rival Netflix up roughly 40% YTD.

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

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