The ability to destroy a stock price is insignificant next to the power of the Force.
Disney shares have surged 5% since Monday following glowing reviews of “Star Wars: Episode VII — The Force Awakens.”
It’s a big turnaround from a week ago. Disney(DIS) stock tumbled 5% last week — it fell every day — as some investors started to wonder if the movie could possibly live up to the considerable hype.
Their lack of faith was disturbing. And apparently misguided.
Of course, the market won’t know until this weekend just how big the box office numbers will be. But the initial reaction to the film seems to suggest that they will be hotter than the temperature on desert planet Jakku.
Disney needs “Star Wars” to be a massive hit. Investors have grown increasingly nervous about the future of ESPN in light of more data about cable customers cutting the cord.
A huge weekend for “The Force Awakens” would prove that Disney CEO Bob Iger was right to spend $4 billion on Star Wars creator Lucasfilm in 2012.
It would also set the table for billions of dollars in box office, consumer products and other revenue from the franchise in years to come.
Episodes VIII and IX are due out in 2017 and 2019. And there are several so-called Star Wars Anthology spin-offs already planned.
“Rogue One” — which tells the story of what happened between Episodes III and IV — hits theaters next December. Origin stories for Han Solo and bounty hunter Boba Fett are also in the works.
But Disney won’t be the only winner on Wall Street if “The Force Awakens” turns out to be one of the biggest blockbusters ever.
So investors should not underestimate the Force. Bears may wind up getting choked like Admiral (or is it General?) Motti in “A New Hope.”
Heck, these companies could be part of a Star Wars ETF. Ticker symbol JEDI, anyone?