Disney recently surprised the market with the announcement of its seventh theme park, set to open in Abu Dhabi. CEO Bob Iger, looking to tap into the influx of 39 million tourists expected in the capital, has sparked investor excitement, reflected in a rise in Disney’s stock.
Following the news, shares jumped about 13% in the two days leading up to Thursday, prompting several major financial firms, like Morgan Stanley and UBS, to raise their price targets from $120 to $125 per share.
This marks a notable rebound as Disney’s stock had experienced a 17% decline earlier in 2025. Iger emphasized the potential audience, stating that hundreds of millions of people are now within easier reach of the parks. The proximity to Dubai, where 120 million people will visit this year, along with projections of 39 million tourists annually to Abu Dhabi by 2030, highlights the appeal of the new location.
Iger noted that there are currently no plans for an eighth theme park, but he hasn’t entirely dismissed the idea, hinting at a history of substantial investment in business growth.
The park will be developed in collaboration with the Miral Group, based in Abu Dhabi. Disney also announced stronger-than-expected quarterly results, reporting a revenue increase of 7% to $23.6 billion, with earnings per share reaching $1.45. Moreover, the company has adjusted its annual earnings forecast upwards, from $5.30 to $5.75.
In addition, Disney plans to invest $30 billion in its parks located in Florida and California, responding to competitive pressures, especially with a new park on the horizon from Universal Orlando Resort, which aims to challenge Disney’s dominance.
Iger has made a notable return to the CEO position after a brief retirement, during which he faced employee backlash and external investments issues. Post-retirement, he led the charge against activist investor Nelson Peltz, ultimately reclaiming control for long-term strategic focus. “We appreciate the trust placed in our board and management,” he mentioned, reaffirming the company’s commitment to focus on value creation and creative excellence.
