The Force Awakens Bumps Disney Stock to a Buy


Disney’s “Star Wars: The Force Awakens” has managed to destroy its competition at the box office, quickly becoming the movie that reached $1 billion worldwide in record time, beating the previous holder, Jurassic World, by a day. With Star Wars still yet to open in the Chinese market, Disney stock looks really good at the moment.

Strong Domestic and Foreign Performance

The movie’s so far over $1 billion in revenue has been nearly evenly distributed between the domestic and foreign market, with strongest international showings in United Kingdom, Germany, and Australia.

Grossing over $500 million domestically in just two weeks, it has become less of a question will “The Force Awakens” become the highest grossing movie in the U.S. history, and more of a question of when will it happen.

China’s Market

The movie still has one huge market where it is yet to premiere, as it will open in China on January 9th. The opening will probably boost the movie’s foreign gross even higher, setting it on the path of becoming the most profitable movie ever worldwide.

There is some discussion about whether China will really give the movie’s international box office a boost, as the franchise is not that popular in the country. However, despite the lack of familiarity, Disney has invested a lot in aggressively promoting the movie to Chinese audiences, and the generally positive response to the movie by majority who have already seen it, could push the younger moviegoers to show up for the movie in droves.

Not only that but the other movies that “The Force Awakens” will be opening against in China are mostly domestic and do not have an especially strong appeal, which will probably help drive ticket sales for the Star Wars movie up. In light of that, some analysts now consider Disney stock undervalued and have raised their rating to “buy” before the force truly awakens and reflects in the company’s share price.


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