Disneys content investments are also likely to be much more durable, given its iconic franchises, unlike Netflix which focuses a lot more on one-off shows. The first memo Iger sent out in his smashing return to the CEO role centered around giving Disney's creatives more control in the distribution process. Making the world smarter, happier, and richer. The stock price is currently down 14.5% year to date, trailing the 27% return of the S&P 500 index. So is Disney a buy? According to the current price, Walt Disney is 67.20% away from the 52-week high. Learn all the ways IBDs top investing tools can help you succeed in the market! . You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. Per capita spending in Disneys parks has also soared by 40% in Q2, versus the same period in the pre-pandemic era, indicating that these assets could emerge stronger than pre-pandemic levels, generating sizable cashflows for Disney and potentially masking some of the impacts of rising content investments. The number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. A closer look at its segments reveals that revenue from Disney Media and Entertainment Distribution fell 3% year-over-year (YoY) to $12.72bn in the fourth quarter of2022 owing to widening losses for Direct-to-Consumer (DTC) and Content Sales/Licensing. Get market updates, educational videos, webinars, and stock analysis. While revenue rose 26% year-over-year to. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. But the company kept growing. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. Considering that the company's latest quarter saw its entertainment and media segment report $10 million in operating losses after a costly investment in streaming content, the box office success should help Disney continue its current growth trajectory. Disney stock has seen a major sell-off this year, declining by almost 37% year-to-date, considerably underperforming the S&P 500 which remains down by 19% over the same period. As we've mentioned before, subscriber growth will not be linear each and every quarter, and the trend is driven by several factors, including content releases and promotions, McCarthyadded. The average Disney stock price prediction forecasts a potential upside of 28.69% from the current DIS share price of $101.68. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. This top entertainment stock should bounce back in 2022. The reopening of Walt Disney 's ( DIS -1.41%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+). . Written by 2023 Capital Com Online Investments Ltd. Its expected to turn a profit in 2024. The Motley Fool has a disclosure policy. Ticket sales are a central element in recovering costs for expensive content, and in sending the right films to theaters to add to profitability without cutting into streaming efforts. Investors should consider buying Disney stock if they are willing to wait for two years and carefully consider their opportunity costs and potential yields in other instruments. It's one of Pixar's only bombs. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. I believe Hulu is a strategic fit and should not be sold. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. There are several factors weighing the stock down. The recent rally, though, shows promise. And the gains are not over yet. The name was changed to The Walt Disney Studio at Roys suggestion. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In the past, Peltz's involvement has led to positive changes in the companies he has worked with. Theatrical releases, though, continue to struggle. Disney's dividend yield in 2019 was 1.2%, and CFO Christine McCarty has said the next one "will likely be a small fraction of our pre-COVID dividend with the intention to increase it over time as our earnings power grows." Disney is releasing seven other films outside of the MCU in 2023. Data source: IMDB. The following catalysts were responsible for the increase in Disney's stock price from the date of my sell rating until 2/9/2023: On 1/11/2023, Disney announced the appointment of board member Mark Parker, who is also Nike's executive chairman, as the new chairman of the board. Create your Watchlist to save your favorite quotes on Nasdaq.com. When looking for Disney stock projections, remember that analysts and algorithm-based predictions can be wrong, and shouldnt be used as a substitute for your own research. Author's Comment in January 2023. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: Key Points. I wrote this article myself, and it expresses my own opinions. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. The companyrode the pandemic-induced streaming boom into the first quarter of 2021. Is this happening to you frequently? However, the streaming business remains cash-intensive with Disney ramping up content spending by $8 billion this year to support its Direct to consumer offering, while projecting that the business will only be profitable in 2024. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. However, investors were pleased with progress in slashing costs and narrowing streaming losses, even though they still came in. This news was received favorably by investors. Theme parks have been propping up the business, and they are clearly highly resilient assets, but there will also be concerns that as a cost-of-living crisis wages in key markets, it could see ticket sales or merchandise revenue weaken, Streeter wrote in a note on 21 November. The stock also remains down by almost 50% from highs seen in 2021. This announcement could be a catalyst for the DIS stock to find a new direction, with the possibility of it being the single most significant factor impacting the stock price in the next 18 months. Management said that range will now be higher, as they ramp up spending on local and regional content. It's been a wild ride on Wall Street since early 2020, as the stock market fell into a bear amid the coronavirus crash. It needs to first show significant improvement. Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. Some of the highlights are new CEOs, old CEOs, complete stops to some of its businesses, skyrocketing streaming, huge losses, and fabulous rebounds. *Average returns of all recommendations since inception. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. And that compounds the problem of real-world inflation for Disney, which said it spent $3.6 billion on capital expenditures in the past fiscal year and will increase that by $2.5 billion in 2022 . Please. Remember that markets are volatile, and that past performance cannot guarantee future results. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. Disney stock has been a part of six stock splits since the IPO,The first post IPO stock split happened in 1967 which was a 2 for 1 stock split. IBD Stock Checkup assigns Disney a 52 Composite Rating, which combines key fundamental and technical metrics in a single score. At the time of writing (1 December 2022), the stock last closed at $97.87 per share on 30 November, having sunk 51.8% from its all-time high price of $203 on 8 March 2021. DIS. That's in addition to streaming content and other products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. Since the beginning of 2022, Disneys stock has declined by 37%, steeper than 14.51% lost over 2021and was 1.5% below the pre-pandemic price of $99.40 on 16 October 2017,according to Trading Viewdata. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. IsDisney stockis a buy right now? We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. Formerly with Fidelity Investments, Dean Witter Investment Management, Citibank - Amsterdam, Eli Lilly - Brussels, Thomson Financial (aka Thomson Reuters), NYC gov., and Apple, Inc. Graduate of Baruch College CUNY, NYU College of Arts and Sciences, and Erasmus University (Rotterdam School of Management) in that order. CEO Bob Iger's epic return to the top spot signaled confidence on Wall Street because he developed the playbook for Disney's well-oiled money-making machine. What if youre looking for a more balanced portfolio instead? In 2020, Disney pleased its shareholders with around 25% stock return. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. Disney is facing mounting pressure from its streaming business. Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. Park & Experiences operates all Disneys resorts, hotels, Disneyland parks, a four-ship vacation Disneyland Cruise Line, and other entertainment facilities. The majority of retail investor accounts lose money when trading CFDs. It should be noted that conditions have already begun to change. Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. Capital Com Online Investments Ltd is a limited liability company with company number 209236B. The landscape looks a lot different these days, but some things never change, such as James Cameron's stunning ability to create incredible sales-generating films, and Disney's ability to find people like him and churn out new hits from reliable franchises. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. 3 Dates for Disney Stock Investors to Circle in March, Stocks most and least liked by hedge funds and mutual funds - Goldman, T. Rowe Price Associates, Inc. (Investment Management), Northern Trust Investments, Inc.(Investment Management), Chairman-International Content & Operations, Chief Compliance Officer & Senior Vice President, Chief Diversity Officer & Senior Vice President, Chief Financial Officer & Senior Executive VP, Chief Human Resources Officer & Senior EVP, Chief Security Officer & Senior Vice President, EVP-Controllership, Financial Planning & Tax, Executive VP-Corporate Social Responsibility, Regional Director Bus Dev Operating Participants, Senior Executive Vice President & General Counsel, Registration on or use of this site constitutes acceptance of our. Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. Get the latest Netflix news, plus stock quotes and analysis. The relative strength line, which compares a stock's performance to the S&P 500, keeps heading sharply lower and hasn't found a solid bottom. Our priority is the enduring growth and profitability of our streaming business. 2009 was a tough year for Disney and the market as a whole. These symbols will be available throughout the site during your session. Disney has three years to double its subscribers, but that should be an easy layup given that Disney has gotten this far without having deeply tapped the rich content pipeline it unveiled a year ago. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. That leads to why I think Disney has a strong shot at a great year. The investment case for Disney hinges on the growth of Disney+, so it's understandable for the stock to trade in line with the rate of subscriber growth, but the market overreacted to Disney's results last quarter. This transformation is focused on operational efficiency. Iger also told investors that it has new sequels in the works for Frozen, Toy Story, and Zootopia. That's nearly 21% potential upside. Disney should actually acquire the remaining piece of Hulu that it does not already own and should not sell ESPN, as some analysts and activists are pushing. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. The 26 analysts offering 12-month price forecasts for Walt Disney Co have a median target of 130.00, with a high estimate of 141.00 and a low estimate of 94.00. Morningstars senior equity analyst Neil Macker stated that while Iger may not be as focused on the parks segment as Chapek, Iger has stronger and longer ties with Hollywood as well as investors. Revenues from Disneysstreaming services, including Disney+ and Hulu, under Direct-to-Consumer & International, jumped 41% in the fourth quarter of 2020 to $4.9bn and 81% to nearly $17bn for the fiscal year 2020 ending 3 October. The US Consumer Price Index (CPI) was running at an annual rate of 7.7% in October, easing from the peak of 9.1% in June. Disney is ending calendar 2021 with a bang, but there is much more on the way that could be explosive for subscriber growth. Why I rated Disney (NYSE:DIS) as a Sell in December 2022 is because of weak fundamentals, uncertainty surrounding the return of CEO Bob Iger, competition, and the highly variable financial performance of Disney, which is cyclical. The information and content are subject to change without notice. It is also a constituent of the S&P 500 index (US500). Disneys stock price steadily grew during these stock split periods finally going past $25 in 1997, there was slight tumultuous period over the next few years but Disneys stock price was most hit in the early part of the next decade. Its "Lightyear" film opened to disappointing results. *Real-time prices by Nasdaq Last Sale. With our expectation that peak losses are now behind us, DTC operating results should improve going forward as we lay the foundation for a sustainably profitable business model, McCarthy said. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. These are planned for release over the next few years. The new "Star Wars" original series releases Dec. 29 on Disney+. ET by MarketWatch Automation All 30 Dow stocks are falling, led by Boeing, Salesforce and Disney Feb. 24,. And so we are going to monitor it very carefully. In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. DIS closed at $138.72 as of March 28, 2022 is -32% below its all-time peak. In the fourth quarter of 2022, Parks & Experiences booked revenue of. Activist investors continue to play a cooperative role. The long-term . Source: FactSet. It's been a roughly ride for Chapek, who is navigating the huge investment needed to keep people subscribing to Disney+, in addition to reopening parks and cruises. The Motley Fool owns and recommends Netflix and Walt Disney. We expect the unique content on ESPN and Disney Channel will provide the firm with a softer landing than its peers as viewing transfers to an over-the-top world over the next decade, Macker added.. Disneys theme parks and resorts are almost impossible to replicate, especially considering the tie-ins with its franchises and other business lines, he said. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. That's nearly 22% below the high set on Jan. 3.". Some of the major properties licensed by the company include: Mickey and Minnie Mouse, Star Wars, Frozen, Disney Princess, Avengers, Spider-Man, Toy Story, Disney Classics, Winnie the Pooh and Cars. Previously the Walt Disney Co. issued its first stock through 6% cumulative preferred shares in 1940 where it was traded OTC (Over The Counter). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. The Walt Disney Company at the 2022 Bank of America Securities Media, Communications & Entertainment Conference August 10, 2022 Disney's Q3 FY22 Earnings Results Webcast May 18, 2022 The Walt Disney Company at the 9th Annual MoffettNathanson Media and Communications Summit View All Investor Relations News February 9, 2023 It only grossed roughly $156 million through late June, below its $200 million budget. However, as of 2/27/2023, there are other options for income, such as CDs yielding 4.5% to 5% and 10-year US Treasuries yielding 3.95%, with 1-year yielding 4.75%. A 52 Composite rating, which is the enduring growth and profitability of our streaming business add to than. 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