In 2020, Disney pleased its shareholders with around 25% stock return. Disney should not divest Hulu because Iger himself has said that Hulu ensures coverage of different age groups and broadens the market for its streaming services. As of July 2022, the company operates two main business segments: Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP). The Motley Fool->. BREAKING: Salesforce Soars Late, Tesla Doesn't Unveil New EV. 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. Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. Disney Parks, Experiences and Products segment sales jumped 70% to $7.4 billion in Q3. Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. 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. The Walt Disney Co. is a diversified international family entertainment and media enterprise. -2.08%. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. You should conduct your own due diligence, and never invest or trade money you cannot afford to lose. However, the company's shares remain down 33% over the past 12 months. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. The latter has expanded very successfully across international markets based on its focus on producing local language content. Is it profitable to invest in Walt Disney Co (The) stock? * Average Estimates in Million (e.g. Disney Parks, Experiences and . Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. According to the numbers, the earnings per share hit $1.06. Learn all the ways IBDs top investing tools can help you succeed in the market! Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. Our current forecasts indicate Disney+ will hit profitability by the end of fiscal 2024 and achieving that remains our goal. Wait for the stock to rise above its 200 day moving average of 128.25 before getting too bullish. The Disney stock price targets ranged from a high of $185and a low of $94. A 66 Earnings Per Share Rating reflects a three-year earnings growth rate of -35%, which includes a 19% decline in fiscal '19 and a 65% drop in fiscal '20. Then, economic declines in 2022 strained the streaming industry as people reduced discretionary spending. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. The parks segment has recovered well, with revenue nearly doubling year over year in the fiscal fourth quarter. (read more). The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. 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. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. 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. The new "Star Wars" original series releases Dec. 29 on Disney+. Yes. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. Disney trades at $169.30 as of publishing, off the 52-week low of $79.07. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. Remember that markets are volatile, and that past performance cannot guarantee future results. It's worth watching, though, to see how the media giant fares now that its theme parks, cruises and movie theaters are back in action. The company wants a shake-up and a change of direction, and Bob Iger, who led the House of Mouse for 15 years, is clearly considered to be the best character for the job to throw a sparkle of magic back over the business, wrote Streeter of Hargreaves Lansdown. During the Q4 earnings call in November, Disney CFO Christine McCarthy reminded investors that they don't expect "[subscriber] growth will necessarily be linear from quarter-to-quarter." Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. As a result, Disney has a lot of work ahead to return to its pre-pandemic form. 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. Disney is much more than Marvel. DIS closed at $138.72 as of March 28, 2022 is -32% below its all-time peak. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Get the latest Walt Disney Co (DIS) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Unlike Netflix, which monetizes its content investment solely via monthly subscription fees, Disney has a much larger value chain, given its theatrical business, theme parks, merchandise, and licensing operations. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. 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. The 90s brought two more stock splits, one 4 for 1 in 1992 and then a 3 for 1 stock split in the summer of 1998. 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 been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. It had been sinking in the year since, but most recently moved below its 50-day moving average. However, if you are not currently a holder of Disney shares, it may not be the best time to buy. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. The stock is currently changing hands at $160.95, down 7.74% from the start of trading. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. Moodys Daily Credit Risk Score is a 1-10 score of a companys credit risk, based on an analysis of the firms While the Covid-19 pandemic hit Disney with theme park closures and cancelled shows, the strong performance of its streaming services supported the companys performance. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. Disney stock is listed on the New York Stock Exchange (NYSE) under the ticker DIS. 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. This sets the stage for a long-term vision for the company that focuses on the streaming business, margin improvement, cost reduction, and strategic reorganization. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Do Not Sell My Personal Information (CA Residents Only). In June, then-CEO Bob Chapek explained that "We have seen each new Disney+ original Marvel series attract incremental viewership and new subscribers that hadn't previously engaged with Marvel content on the service." can generate Disneys stock price forecast beyond 2022. Disney was also given the authority, which it never exercised, to build a nuclear power plant and an . The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. Additionally, Florida Gov. balance sheet and inputs from the stock market. 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. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. In the earnings call on 8 November, CEO Bob Chapek said the company still expected to achieve profitability in fiscal 2024, with losses expected to decrease in the first quarter offiscal 2023 and no significant shifts in the economic environment. The major market events for the week ahead right in your inbox. I am not receiving compensation for it (other than from Seeking Alpha). We expect that Iger will unwind some of the major changes put in place by Chapek. So is Disney a buy? Key Points. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. 10 stocks we like better than Walt DisneyWhen our award-winning analyst team has a stock tip, it can pay to listen. He has credibility. Turning Red Preview Beyond Disney+, continued financial success in the Disney Parks could also be a big boost to stock. The consensus 12-month average Disney share price forecast was $132.07, a 34.95% potential increase from the closing price of $97.87 on 30 November. It found a bottom on March 18, 2020, before making its way back to fresh highs. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. But the House of Mouse remains on a promising path. Following Disney (NYSE: DIS) and its escapades over the past few years has been at least as exciting as paying money to see one of its blockbuster films. The information and content are subject to change without notice. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. Some investors may adopt a wait-and-see approach. If you rely on the information on this page then you do so entirely on your own risk. The US Consumer Price Index (, 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, Fourth-quarter revenue rose to $20.15bn from $18.53bn a year ago, but was 4.5% lower than consensus estimates polled by, A closer look at its segments reveals that revenue from Disney Media and Entertainment Distribution fell 3% year-over-year (, Disneys chief financial officer Christine McCarthy said during the earning call on. 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. 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. Chart by author. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. Disney's revenue sources are divided into two streams. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. 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. on Q1:2023 conference call on 2/8/2023. However, this takeover is not expected to impact Disney's cash flow. I am not receiving compensation for it (other than from Seeking Alpha). Disney stock soars after Bob Iger replaces Bob Chapek as CEO By Ariel Zilber and Alexandra Steigrad November 21, 2022 8:15am Updated Disney's stock price soared 10% after Bob Iger agreed. Consider Disney's 2022 film slate versus its competitors. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. But it needs to find a balance between streaming and in-person revenue. 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. Written by Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. 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. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. You'll want to wait until the market is in a confirmed uptrend, which means investors can buy leading stocks at proper buy points. You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. Disney CEO Bob Iger (Iger, hereinafter) said, ".. but let me also address the pricing side. 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. All rights reserved. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. Disney stock predictions: Can Iger bring back Disneys magic? 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