Disney (DIS) shares are up more than 10% on Wednesday, May 7, after the entertainment giant announced plans of building its next theme park in the United Arab Emirates. 

The company has picked Abu Dhabi as the destination for a new Disneyland theme park as UAE is “the crossroads of the world,” said Bob Iger, its chief executive, in a CNBC interview today. 

Iger expects massive demand for the company’s upcoming theme park in Abu Dhabi as it will be located near two major airports and the company estimates 500 million people in the region have financial means to afford a trip to Disneyland. 

Including today’s gain, Disney stock is up nearly 25% versus its low in early April. 

What an Abu Dhabi Theme Park May Mean for Disney Stock?

Investors are responding positively to the Abu Dhabi development this morning as building new theme parks has historically “lifted the Disney brand considerably,” revealed Iger on Wednesday.

Opening a Disneyland in the United Arab Emirates was like putting it “in the backyard of a whole new consumer base,” he added in the CNBC interview. 

According to Bob Iger, the new theme park and resort will help Disney stretch its wings across a region that it has so far reached “superficially” only. 

His bullish remarks suggest the new Disneyland may eventually contribute significantly to the company’s financials, offering a strong reason for investors to own DIS shares over the long term. 

Disney+ Subscriber Growth Paints a Rosy Picture for DIS as Well

Other than the expected continued strength in the experiences segment, the uptick in Disney’s streaming business offers an additional reason to load up on its shares in 2025.

On Wednesday, the company said its flagship streaming service, Disney+, saw a surprise increase of 1.4 million subscribers in its fiscal Q2. The company’s management guided for a modest further increase in the current quarter as well. 

That made Citi analyst Jason Bazinet reiterate his “Buy” rating on Disney stock. He currently has a $125 price target on the NYSE-listed firm that translates to nearly 25% upside from here.  

Bazinet expects DIS shares to extend gains as the company continues to grow its content library to emerge as a “pay TV substitute” in the back half of 2025. 

Wall Street Continues to See Disney as a Great Long-Term Holding

Investors should note that other Wall Street analysts are positive on Disney stock amidst a challenging macroeconomic environment this year. 

The consensus rating on DIS currently sits at “Strong Buy” with the mean target of about $124 signalling potential upside of 23% from current levels.