DIS - Why Is Kidpik (PIK) Stock Up Today?
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A company that is making waves in the children’s fashion industry is teaming up with a leader in family entertainment. KidPik (NASDAQ:PIK) is known for its subscription delivery service for children’s clothing. It’s a setup similar to that of Stitch Fix (NASDAQ:SFIX). Today, KidPik announced that it is joining forces with Disney (NYSE:DIS) to release several boxes inspired by the upcoming film “Cheaper by the Dozen.” Accordingly, PIK stock has been rising all day, and DIS hasn’t been far behind.
What’s Happening With PIK Stock
The feature film is streaming exclusively on Disney+. While it hasn’t been released yet, anticipation is high. Today, PIK stock is rising as a result. As of this writing, shares have skyrocketed by more than 73% after a stagnant week. DIS is rising as well, though its gains have only reached 0.21% so far. Both companies have fallen considerably over the past six months. However, this type of partnership might be exactly what they need to start moving forward.
Why It Matters
KidPik is an interesting company to evaluate. The company failed to make a splash during its initial public offering (IPO) in November 2021. However, it has since garnered status as a social media favorite, leading PIK stock to pop in early 2022. It caught the eye of popular Twitter (NYSE:TWTR) influencer Zack Morris, as well as many other digital investors. While the stock would ultimately fall, its rebound should give investors cause for optimism.
With today’s impressive growth, PIK is proving that partnerships with trusted household names can help boost a family-centric company. Despite Disney’s struggles, Disney+ remains a popular streaming choice for families, as all of its content is child-friendly. “Cheaper by the Dozen” is expected to resonate well with the platform’s young audiences, particularly due to its cast of child stars. Now KidPik is offering the opportunity for kids to dress exactly like the stars of the film. According to the statement released by KidPik, its boxes include “The Fashionista,” “The Social Media Maven,” “The Go-Getter” and “The Sports Fan.”
Markets are reacting well to this news, and they should be. The film debuts on Disney+ tomorrow and audiences are excited. It’s also worth noting that Disney have been generating considerable buzz on TikTok, an app with unprecedented popularity among young users. As InvestorPlace contributor Josh Enomoto notes, “One of the reasons for such dominance is that TikTok tends to cater to young users so you have the nostalgia effect to go on.” This type of momentum will help both PIK stock and DIS continue rising as anticipation mounts ahead of the film’s release.
What It Means
Of course, all this raises the question of what this means for the long-term future of PIK stock. The hype behind the film will ultimately die down. However, what investors should take from this is that PIK is a stock worth watching. If the company continues to prioritize these types of partnerships, it can continue to grow. KidPik isn’t likely to relax its efforts to secure a market share among young consumers by associating itself with the names they love. Investors should keep the undervalued stock on their radar.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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