These are planned for release over the next few years. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. Still, considering the company's present measures as well as the past glory, the market is bullish about the stock and feels it might rally again in 2022.The Walt Disney Company, popularly. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. Our priority is the enduring growth and profitability of our streaming business. The pandemic depleted its parks and box office revenue in 2020 and 2021. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. It earns the largest affiliate fees per subscriber of any cable channel and generates cash from advertisers looking to reach adult males aged 18 to 49, a critical demographic. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. 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. Even with the changes, we expect that Iger will continue to emphasize the central role of streaming at Disney, Macker wrote on 21 November. The parks segment has recovered well, with revenue nearly doubling year over year in the fiscal fourth quarter. Build a CFD portfolio with your favourite companies. Image source: Walt Disney. John Ballard owns Netflix and Walt Disney. Disney has undergone a challenging few years, to say the least. The company added 14.6 million new subscriptions from its streaming service in the fourth quarter, bringing its total subscriptions for 2021/2022 to more than 235 million, said Chapek. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? Last year Disney films won 23 Oscar nominations. The question above was, whether the transformation work can be completed before conditions change again. Despite strong first-quarter results, Wall Street analysts have very different views on varying parts of the . Shares of the entertainment giant slid over 40% in 2022. 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. DIS closed at $138.72 as of March 28, 2022 is -32% below its all-time peak. I have no business relationship with any company whose stock is mentioned in this article. Park & Experiences operates all Disneys resorts, hotels, Disneyland parks, a four-ship vacation Disneyland Cruise Line, and other entertainment facilities. However, it was still way above the inflation target of 2%. Data source: IMDB. . Disney aims to reduce its debt. Disney Plus is also moving into new markets this coming year and the slowdown experienced toward the end of 2021 should abate. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. Marvel's first 2023 release, Ant-Man and the Wasp: Quantumania, opened last weekend with $104 million in opening weekend sales, exceeding expectations and becoming the third-highest February opening ever. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. DMED covers global film and episodic television content production and distribution activities. Capital Com Online Investments Ltd is a limited liability company with company number 209236B. 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. 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. The demographic difference in age is tremendous. And the gains are not over yet. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. If you have an ad-blocker enabled you may be blocked from proceeding. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. After the August 10 close, Disney reported higher-than-expected fiscal Q3 earnings, as Disney+ streaming subscriptions came up strong. The China Trade: Demand Boom or Inflationary Bust? Disneys stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. . All rights reserved. Please disable your ad-blocker and refresh. We are not in any way stepping away from streaming. Get the latest Netflix news, plus stock quotes and analysis. movie and theme park attendance and ratings for Disney-owned ABC and ESPN is up for debate. As of 1 December, 22 analysts tracked by Market Beat recommended a moderate buy rating for Disney stock, while 19 recommended a buy and three gavea hold rating. The reopening of economies and activities around the world has slowed demand for streaming services, as employees and children have either fully or partially returned to offices and schools. Media and . The company reports fiscal fourth-quarter results in November. 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. That's nearly 22% below the high set on Jan. 3.". He ultimately reached an agreement with the Disney Board, which added an ally to the Board. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. It has also masterfully designed all of the content to work together, so viewers would need to follow the stories on streaming to understand all of the developments accounted for in the films released in theaters. While the decline was substantial, the entertainment company actually fared better than its biggest competitors, Netflix and Warner Bros. On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. Disney stock predictions: Can Iger bring back Disneys magic? Disney's revenue sources are divided into two streams. The 64 analysts offering price forecasts for Walt Disney. 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. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. The stock is currently changing hands at $160.95, down 7.74% from the start of trading. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. Read The Big Picture for detailed daily analysis of what's going on in the stock market. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into It had been sinking in the year since, but most recently moved below its 50-day moving average. Privacy Policy & Terms of Use. Macker also expected Disneys animated franchises across multiple platforms from movies, home videos, to musicals to continue to grow as more popular movies get released by the animated studio and Pixar. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Investors probably shouldnt worry too much about the rising investments Disney is making into its content and streaming operations. * Average Estimates in Million (e.g. Walt Disney Co. stock falls Friday, underperforms market Feb. 24, 2023 at 4:49 p.m. Never invest or trade money that you cannot afford to lose. The DMED segment encompasses the company's global film and episodic television content production and distribution activities. However, Disney's recent success with Avatar: The Way of Water could mean audiences are truly back. Disney started off the year strong with the release of Marvel's Wanda Vision,The Falcon and the Winter Soldier, and Loki -- all original series released as Disney+ exclusives. It's a bonus that some of these shows, such as La Casa de Papel (aka Money Heist) and Squid Game, have translated to high viewership in the U.S. and Canada too. 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. It also spent less in . Written by The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. 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. It earned adjusted earnings of $1.09 a share on revenue of $21.5 billion vs. S&P Global Market Intelligence forecasts for $0.99 on $21.0 billion. 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. |. 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. Disney CEO Bob Chapek mentioned that the company has over 340 local original titles in various stages of development and production across its direct-to-consumer platforms, which would include Hulu and ESPN+. What are analysts forecasts for Walt Disney stock? To make the world smarter, happier, and richer. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. Much of this content will come later in the year, as McCarthy said, "We expect Disney+ subscriber net adds in the second half of fiscal 2022 will be meaningfully higher than the first half of the year.". 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. Invest better with The Motley Fool. In November, Disney released Peter Jackson's Beatles documentary and Marvel's Hawkeye. 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? I believe Hulu is a strategic fit and should not be sold. The score provides a forward-looking, one-year measure of credit The median . Disney is currently faced with the question of whether these changes can be made before conditions change again, and how far should the changes go? Iger's biggest strength lies in his experience, and both Disney staff and investors believe in him. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. 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." 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. 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 . To make the world smarter, happier, and richer. Its expected to turn a profit in 2024. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. It accounts for six of the 20 highest-grossing movies ever, and it generated 21% of all domestic ticket sales in 2020 and 2021. OK, Avatar: The Way of Water was an exceptional film, becoming the third highest-grossing film ever in a matter of weeks. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. on Q1:2023 conference call on 2/8/2023. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. See our analysis of Disney revenue for a closer look at the companys key revenue streams and how they have been trending. When you think about it, Abbott Elementary airs on ABC, then it goes to Hulu. Several catalysts led to Disney stock price to increase in 2023. Disneys stock price has significantly risen since its IPO. Activist investors continue to play a cooperative role. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. 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. Disneys stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. 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. Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. Marvel Studios and Lucasfilm have continuously produced some of the worlds highest-grossing movies through franchises such as the Marvel Cinematic Universe and Star Wars series. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. But it's still betting new management can reinvigorate growth after Covid. 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. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. 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. Disney Parks, Experiences, and Products: theme parks, resort destinations, and cruise line, Disney's consumer products, games, and publishing businesses. In the fourth quarter of 2022, Parks & Experiences booked revenue of. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. The Walt Disney Co. is a diversified international family entertainment and media enterprise. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. Disney stock has been publicly traded since 1957 when it had its initial public offering where Disney stock was sold at $13.88 per share. This will be Igers third transformation. What if youre looking for a more balanced portfolio instead? Disneys flagship Disney+ - which was a big driver of Disney stock in recent years - saw subscriber additions hold up better than rivals, with the company adding 7.9 million subscribers over the last quarter, compared to Netflix According to the current price, Walt Disney is 67.20% away from the 52-week high. Making the world smarter, happier, and richer. But the House of Mouse remains on a promising path. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. Stock prices have fallen precipitously across sectors over recent months and we are now in a bear market for the first time since March 2020, when the Covid-19 outbreak triggered a market crash. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. Disney is not short of growth opportunities heading into 2022. Google ESPN remains the premier domestic sports television network due to its extensive sports programming. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. The day before, on February 8, 2022, he had said: When you think about it, Abbott Elementary airs on ABC, then it goes to Hulu. Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. Since IPO, Disney stock has been traded on the New York Stock Exchange under the ticker symbol DIS, it has been one of the 30 stocks in the Dow Jones industrial average since 1991. Invest with Trefis Market Beating Portfolios. . Read on to find out. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. 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. The reopening of Walt Disney 's ( DIS -1.41%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+). Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. 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. I wrote this article myself, and it expresses my own opinions. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. Consider Disney's 2022 film slate versus its competitors. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. Wall Street analysts do not provide long-term Disney share price projections. Meantime, theme park revenue picked up. 3 Dates for Disney Stock Investors to Circle in March, Disney Can't Make a Multiplex Mountain Out of an Ant Hill, This Could Be a Reason Disney Stock Soars This Year, Disney World to Loosen Reservation Regulations, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, This State Has the Highest Real Estate Taxes (and It's Not Even Close), Disney still has a mountain to climb to get its flagship, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Since then, Disney cleared several buy points en route to a March 8 record high last year. If it . However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. And as you can see below, BABA beat on both top . Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. There are several factors weighing the stock down. 3 Dates for Disney Stock Investors to Circle in March, Disney Can't Make a Multiplex Mountain Out of an Ant Hill, This Could Be a Reason Disney Stock Soars This Year, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, This State Has the Highest Real Estate Taxes (and It's Not Even Close), Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. have dropped nearly 15% so far in 2022. Discovery. 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. But its parks and experiences segment is struggling, and the balance sheet has a lot of debt. 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. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. 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. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. You should conduct your own due diligence, and never invest or trade money you cannot afford to lose. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. ET by MarketWatch Automation All 30 Dow stocks are falling, led by Boeing, Salesforce and Disney Feb. 24,. It's one of Pixar's only bombs. Key Points. Shareholders seemed most excited about the new streaming forecasts, as the company now expects to reach . IBD Stock Checkup assigns Disney a 52 Composite Rating, which combines key fundamental and technical metrics in a single score. They just revealed what they believe are the ten best stocks for investors to buy right now and Walt Disney wasn't one of them! Some of the highlights are new CEOs, old CEOs, complete stops to some of its businesses, skyrocketing streaming, huge losses, and fabulous rebounds. The return of a dividend is a positive sign as it illustrates the company's financial confidence. 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." DIS. 2023 Capital Com Online Investments Ltd. I wrote this article myself, and it expresses my own opinions. Some investors may adopt a wait-and-see approach. 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. Cost basis and return based on previous market day close. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. balance sheet and inputs from the stock market. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. 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. 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. Furthermore, Disney paid $900m for Major League Baseballs remaining 15% stake in the streaming company BAMTech (MLB), according to a SEC filing on, and was 1.5% below the pre-pandemic price of $99.40 on 16 October 2017,according to, In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees.