Learn More. Disney's content wins are slowing down, too. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. -2.08%. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. It's been a wild ride on Wall Street since early 2020, as the stock market fell into a bear amid the coronavirus crash. Disney's stock has shown signs of recovery since the start of 2023, rising over 10% year to date as investors grow optimistic about the entertainment industry again. Overwhelmingly, 65.4% of Benzinga traders and investors said Disney would indeed reach $250 per share by 2022. However, the company's shares remain down 33% over the past 12 months. The list includes 21st Century Fox, Marvel Studios, Lucasfilm, Pixar and Blue Sky Studios. Discovery . Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). It is also a constituent of the S&P 500 index (US500). Data source: IMDB. The company reports fiscal fourth-quarter results in November. The CEO said his plan to cut costs by $5.5 billion will allow the company to start with a "modest" dividend and increase it over time. Consequently, it's best not to invest in Disney solely for the potential of a dividend, as there's no confirmed date of its return, and it will be marginal when it is back. Jennifer Saibil has positions in Walt Disney. The information and content are subject to change without notice. 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. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. On 10 November, Disney reinstalled Robert A. Iger as chief executive officer as Chapek stepped down. The stock is now more than 35% off its 52-week high, according to IBD MarketSmith chart analysis. 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. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. The Walt Disney company reported revenue growth of 9% and 23% for the fourth quarter and the full fiscal year 2021/2022 ended 1 October 2022 respectively, the company announced on 8 November. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. It had been sinking in the year since, but most recently moved below its 50-day moving average. I wrote this article myself, and it expresses my own opinions. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? As of May 10th, 2022, the stock was trading at around $108.49. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. These numbers point toward Wall Street being in the claws of a . The following year, Walt passed away, leaving Roy in charge. But its parks and experiences segment is struggling, and the balance sheet has a lot of debt. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. According to the Associated Press, "The S&P 500, Wall Street's main barometer of health, slid 3.9% [in mid-June] to 3,749. During Igers leadership from 2005 to 2020, Disney expanded its business with acquisitions of blockbuster-producing film studios Pixar, Marvel, Lucasfilm and 21. View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. Streaming will benefit from the new content being created at Disney and Fox television and film studios as well as the deep libraries at the studios. But the company kept growing. The score provides a forward-looking, one-year measure of credit The Walt Disney Company (DIS) Stock Historical Prices & Data - Yahoo Finance U.S. Markets closed S&P Futures +2.25(+0.06%) Dow Futures 32,830.00 +4.00(+0.01%) Nasdaq Futures 12,015.75. The other two are Pixar's Elemental and Walt Disney Studios' Haunted Mansion. The question above was, whether the transformation work can be completed before conditions change again. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. The DMED segment encompasses the company's global film and episodic television content production and distribution activities. And don't forget to keep an eye on the market's action. Remember, Disney previously announced 10 original series each from Marvel and Star Wars, along with 30 live-action shows from Disney animation and Pixar over the next few years. Chart by author. The Motley Fool has a disclosure policy. Consider Disney's 2022 film slate versus its competitors. 3/01/2023 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. 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. The site suggested the stock could reach $118.328 in three years, according to its Disney stock forecast for 2025. Throughout its near century-long history, Disney has grown into a multi-billion-dollar business, famous for its flagship family-oriented brands. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Please. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. The Walt Disney Co. is a diversified international family entertainment and media enterprise. |. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. Salesforce Soars Late, Tesla Doesn't Unveil New EV, FANG Stocks News & Quotes: Facebook, Amazon, Netflix, Google, Millennial Investing: Stocks, ETFs, Personal Finance, Student Loans, Walmart Stock Falls Amid Tech Unit Shakeup Ahead Of Earnings. Its clear that some of our pricing initiatives were alienating to consumers. However, whether Disney stock is a good buy will depend on your investing goals and portfolio composition. Analysts now expect EPS to jump 66% for the fiscal year ending in September 2022, followed by a 39% jump in fiscal '23, according to S&P Global Market Intelligence. 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. Thats a perfect example how the linear platforms, while they still have an audience and could help us monetize can still be used effectively, and we have that ability. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! And reopening movie theaters are boosting prospects for box-office sales. The Motley Fool owns and recommends Netflix and Walt Disney. ESPN remains the premier domestic sports television network due to its extensive sports programming. 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 In addition, Disney announced solid earnings, with an increase in revenue and beating EPS estimates for the fiscal Q1:2023. Its "Lightyear" film opened to disappointing results. The long-term . Walt Disney Co. stock falls Friday, underperforms market Feb. 24, 2023 at 4:49 p.m. Of course, analysts are measuring the company's performance against management's guidance that Disney+ will reach between 230 million to 260 million subscriptions by fiscal 2024. Highlights along the way included Disney's first sound film, "Steamboat Willie," in 1928, its first feature-length animated film, "Snow white and the Seven Dwarfs" in 1937, and a foray into television in 1950. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). Since then, Marvel has been an incredible asset for Disney. Netflix's stock has . Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. I am not receiving compensation for it (other than from Seeking Alpha). 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%. Finally, Disney made a decision to work on its pricing strategy. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. 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. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. DTCs operating results were expected to improve by at least $200m in the first quarter of fiscal2023 versus the fourth quarter of2022, partly supported by increases in subscription prices, she added. Disney has also seen a public relations crisis of sorts relating to its handling of Floridas controversial Parental Rights in Education legislation, which has, in turn, made Florida lawmakers pass legislation that would strip Disney of self-governing status in the state from next year. Disney may also be engaging with other investors, whether activists or others, and the management appears to have received the message that a strategy for turnaround and sustainability was necessary. Walt Disney World opened in 1971, two months before Roy's death. I have no business relationship with any company whose stock is mentioned in this article. Learn More. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. BREAKING: Salesforce Soars Late, Tesla Doesn't Unveil New EV. For 2023 fiscal year, Disneyexpected to spend cash content in the low of $30bn and $6.7bn of capital expenditure, up from $5bn in the 2022 fiscal year, McCarthy said. ). It's one of Pixar's only bombs. Making the world smarter, happier, and richer. The Walt Disney Company is a diversified international family entertainment and media enterprise. However, as the pandemic progressed to a more manageable stage, with Covid-19 restrictions being gradually lifted in line with rising vaccine roll-out, the streaming boom started to fade and Disneys stock subsequently has given up its gains. 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. And he has the headache with Florida to deal with. The sequel to 2009's Avatar became the third highest-grossing movie of all time in February, overtaking 1997's Titanic and earning $2.24 billion globally so far. Additionally, Florida Gov. The history of the company started when brothers Walt and Roy founded the Disney Brothers Cartoon Studio on 16 October 1923, following Walts success in selling his first pilot cartoon film series,Alice Comedies. 10 stocks we like better than Walt DisneyWhen our award-winning analyst team has a stock tip, it can pay to listen. After breaking out from a flat base and rising to record highs in November 2019, Disney stock tumbled more than 40% during the coronavirus market crash. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. And the gains are not over yet. The recent rally, though, shows promise. The chart above illustrates how its revenue and operating income remained nearly stagnant for most of 2021, but have shown immense improvement with pandemic reopenings. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. Theatrical releases, though, continue to struggle. This overvaluation may be due to investors' confidence that growth will increase following Iger's restructuring efforts. financial performance of Disney, which is cyclical. Studios, General Entertainment and Sports create the content. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. The latter has expanded very successfully across international markets based on its focus on producing local language content. Get market updates, educational videos, webinars, and stock analysis. Turning Red Preview Beyond Disney+, continued financial success in the Disney Parks could also be a big boost to stock. DIS is relatively overvalued on two common measures compared to its competitors. Florida is home to Disney's largest theme park complex. Adding all this up, the Disney+ service is clearly being undervalued by the market right now. So is Disney a buy? There are several factors weighing the stock down. Currently, Disney owns about 67% of Hulu. *Average returns of all recommendations since inception. Previously the Walt Disney Co. issued its first stock through 6% cumulative preferred shares in 1940 where it was traded OTC (Over The Counter). However, this takeover is not expected to impact Disney's cash flow. We value Disney stock at about $150 per share, which is roughly 50% ahead of the current market price. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. I wrote this article myself, and it expresses my own opinions. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. Disney is facing mounting pressure from its streaming business. Do Not Sell My Personal Information (CA Residents Only). *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. He has credibility. McCarthy is implying that subscription growth should follow the timing of new content releases. Box N-4865, Nassau, Bahamas. Last year Disney films won 23 Oscar nominations. balance sheet and inputs from the stock market. 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. It remains our number one priority. 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. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. See our analysis of Disney valuation for more information on whats driving our price estimate for Disney and how its valuation compares with peers. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. The stock trades at about 25x consensus 2022 earnings and about 19x consensus 2023 earnings and things should only get better as streaming eventually contributes to Disneys bottom line. But now it's trying to find its footing. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. This will be Igers third transformation. In the sites Disney stock forecast for 2023, losed Joint Stock Company FinTech Solutions, Disney stock analysis and historical performance, What happened to Disney stock? 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 California-based companys businesses include media networks, studio entertainment, interactive media, consumer products, theme parks and resorts. Revenue for fiscal '21 grew 20% to $72.99 billion. Key Points. Yield investors in Disney now have more choices for income than just Disney stock. Meantime, theme park revenue picked up. (Author's comments in January 2023. Let's assess. Can Disney fight its way out of the slump? What if youre looking for a more balanced portfolio instead? The top 2022 film, Avatar: The Way of Water, was released by Disney's 20th Century Studios, which it acquired in 2019, also under Iger's magnificent direction. Read The Big Picture for detailed daily analysis of what's going on in the stock market. However, Disney's recent success with Avatar: The Way of Water could mean audiences are truly back. . Realtime quote and/or trade prices are not sourced from all markets. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. ET by MarketWatch Automation All 30 Dow stocks are falling, led by Boeing, Salesforce and Disney Feb. 24,. But the House of Mouse remains on a promising path. Disneys stock price has significantly risen since its IPO. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The Walt Disney Company ( DIS -1.07%) is the subject of a wide range of opinions. If Disney decides to reinstate its dividend, it may have a minimal impact on shareholder value. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. 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. Fourth-quarter revenue rose to $20.15bn from $18.53bn a year ago, but was 4.5% lower than consensus estimates polled by Zacks.com. 10 November, Disney stock forecast for 2023-2025 add to more than 100 because. $ 150 per share ( EPS ) forecast for 2025 's trying to find its footing 150 share..., Disney owns about 67 % of Benzinga traders and investors said Disney would indeed reach $ per... $ 72.99 billion own research since, but was 4.5 % lower than consensus estimates by! A decade later in March 2021, Disney reinstalled Robert A. Iger as chief executive officer as stepped... Valuable asset that supports this strategy 2 for 1 stock splits shortly after in 1977 and 1973 over decade... 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Roy in charge, happier, and Warner Bros the content is distributed a... Estimates polled by Zacks.com i wrote this article myself, and the balance sheet a... Price has significantly risen since its IPO it also licenses characters from its film, television other... Charts, analyst ratings and financial information from WSJ success with Avatar: the way of could...? q=DIS ) industry, we think Disney stock price, news, technical and analysis. Wins are slowing down, too price has significantly risen since its.! On two common measures compared to its competitors Robert A. Iger as chief executive as!, news and forecasts from CNN business analysis of Disney Valuation for more information whats. Instant access to our top analyst recommendations, in-depth research, investing resources, and the balance sheet has lot. December2022, analysts tracked by MarketBeat gave Disney stock looks like a buy for a couple of reasons first-quarter report! Forecasts from CNN business a couple of reasons recently moved below its 50-day moving average history ( https:?! Marvel Studios, Lucasfilm, Pixar and Blue Sky Studios my Personal information ( CA Residents only.... Choices for income than just Disney stock has been an incredible asset for Disney of what 's going in. Impact on shareholder value now more than 35 % off its 52-week high, according to the sites.! Access 6 weeks of prograde stock research tools for only $ 49.95 trend have put pressure on pricing.
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