Apr 29, 2019

Disney's box office dominance fuels its red-hot stock

People dressed up for the "Avengers: Endgame" premiere. Photo: Frederic J. Brown/AFP/Getty Images

Disney's "Avengers: Endgame" ruled the box office this weekend, torching all-time single-day, weekend and per-screen records on its way to well over $1 billion in global ticket sales. It was just the latest victory for Disney, which has had the No. 1 grossing movie every year since 2012 and been the top grossing studio since 2016.

The big picture: Disney is on pace to take a 29.1% share of box office receipts, the largest percentage on record, according to data from Nash Information Services.

  • Since 1995, Disney movies have generated $36.9 billion in domestic box office revenue and have accounted for 16.4% of total market share among movie studios.
  • To put that into perspective, Disney's releases have earned more than the bottom 4 of the world's top 10 movie studios combined during that time.
  • Disney's films have earned almost $2.5 billion more than No. 2 studio Warner Bros., despite releasing 200 fewer movies. It has out-earned No. 3 studio Sony by more than $9.5 billion while releasing nearly 150 fewer films.

Why it matters to the market: Disney's stock has risen by around 30% so far this year, driven by a 10% gain after unveiling details of its new $6.99 per month Disney+ streaming service.

Investors have so far not soured on Netflix because of Disney's run; however, it's clear they view it as a threat.

  • Netflix stock has gained close to 40% this year, but has seen pullbacks coinciding with recent big gains from Disney, including the April 11 launch of Disney+ and on April 23 when Bank of America-Merrill Lynch analysts upgraded Disney to their U.S. 1 list of top investments and increased the price target to $168.

Flashback: Shares jumped 2% last year after the release of "Avengers: Infinity War" delivered $630 million at the box office, a little more than half of the take for "Endgame."

What's next? Disney's box office cash grab may just be getting started. This year also will see the release of "Toy Story 4," "Frozen 2," "Aladdin," "The Lion King" and "Star Wars: The Rise of Skywalker" to name just a few.

Go deeper: Disney is killing its competition at the box office

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 6 p.m. ET: 1,088,878 — Total deaths: 58,773 — Total recoveries: 225,438Map.
  2. U.S.: Total confirmed cases as of 6 p.m. ET: 273,880 — Total deaths: 6,889 — Total recoveries: 9,521Map.
  3. Public health latest: The CDC is recommending Americans wear cloth masks or face coverings in public to help stop the spread of the coronavirus.
  4. 2020 latest: Wisconsin governor calls for last-minute primary election delay.
  5. Oil latest: The amount of gasoline American drivers are consuming dropped to levels not seen in more than 25 years, government data shows. President Trump is calling on the Energy Department to find more places to store oil.
  6. Tech updates: Twitter will allow ads containing references to the coronavirus under certain use cases.
  7. Business updates: America's small business bailout is off to a bad start.
  8. U.S.S. Theodore Roosevelt: Senators call for independent investigation into firing of Navy captain.
  9. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Government will cover uninsured patients' coronavirus treatment

Azar at Friday's briefing. Photo: Win McNamee/Getty Images

The federal government will cover the costs of coronavirus treatment for the uninsured, Health and Human Services Secretary Alex Azar said at a White House briefing Friday.

How it works: The money will come from a $100 billion pot set aside for the health care industry in the most recent stimulus bill. Providers will be paid the same rates they get for treating Medicare patients, and as a condition of those payments, they won't be allowed to bill patients for care that isn't covered.

More states issue stay-at-home orders as coronavirus crisis escalates

Data: Axios reporting; Map: Danielle Alberti/Axios

Alabama Gov. Kay Ivey issued a stay-at-home order on Friday as the novel coronavirus pandemic persists. The order goes into effect Saturday at 5 p.m. and will remain in place through April 30. Missouri Gov. Mike Parson also issued a statewide social distancing order on Friday.

The big picture: In a matter of weeks, the number of states that issued orders nearly quadrupled, affecting almost 300 million Americans.

Go deeperArrowUpdated 56 mins ago - Health