This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. 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%. The firm expects to see 240M to 260M subs just for Disney Plus by. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. Consider Disney's 2022 film slate versus its competitors. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Disney Parks, Experiences and . 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. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. Disney has been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. See our analysis of Disney valuation for more information on whats driving our price estimate for Disney and how its valuation compares with peers. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. But it needs to find a balance between streaming and in-person revenue. 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 View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. 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. Making the world smarter, happier, and richer. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. 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. 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. Dow Jones Falls; Nextracker IPO Pops 50%; Waitlist For Microsoft's Web Transforming AI Grows As GOOGL Market Cap Crashes $173 Bil, Disney Earnings Top, Disney+ Subscribers Fall; Iger Cuts 7,000 Jobs; Peltz Ends Proxy Battle, Stock Market Hits Brick Wall; DraftKings Makes Leaders List, Dow Jones Rallies 250 Points After Jobless Claims; Disney Surges On Earnings. The entertainment company, which will celebrate its centennial anniversary in 2023, is facing headwinds such as fourth-quarter earnings that fell short of analysts' expectations and a looming recession, which may lead toconsumers cutting down on non-essential spending such as entertainment costs. The stock is trying to rally after underperforming since Covid struck and the company got into political hot water with Florida. This top entertainment stock should bounce back in 2022. And the gains are not over yet. Disney just began to tap into this pipeline in the last month. Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. Disney is much more than Marvel. ). See our analysis of Disney revenue for a closer look at the companys key revenue streams and how they have been trending. Bulls want to see Disney's stock break up from either the daily or four-hour bull flag pattern and for continued momentum to push the stock up over its next resistance level at $191.25. During Igers leadership from 2005 to 2020, Disney expanded its business with acquisitions of blockbuster-producing film studios Pixar, Marvel, Lucasfilm and 21. We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. 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. Wall Street analysts do not provide long-term Disney share price projections. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. The Disney stock price targets ranged from a high of $185and a low of $94. These numbers point toward Wall Street being in the claws of a . Park & Experiences operates all Disneys resorts, hotels, Disneyland parks, a four-ship vacation Disneyland Cruise Line, and other entertainment facilities. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Overwhelmingly, 65.4% of Benzinga traders and investors said Disney would indeed reach $250 per share by 2022. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? The pandemic depleted its parks and box office revenue in 2020 and 2021. Despite strong first-quarter results, Wall Street analysts have very different views on varying parts of the . Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. It's fine-tuning this formula for the streaming era, and the 10 films coming to theaters this year may make 2023 a blockbuster year for Disney. In addition, Disney announced solid earnings, with an increase in revenue and beating EPS estimates for the fiscal Q1:2023. However, this takeover is not expected to impact Disney's cash flow. Dividend). Turning Red Preview Beyond Disney+, continued financial success in the Disney Parks could also be a big boost to stock. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. You should conduct your own due diligence, and never invest or trade money you cannot afford to lose. The Motley Fool->. Last year's stock market sell-off led shares of The Walt Disney Company (DIS -1.07%) to plunge 44% over 12 months. The company reports fiscal fourth-quarter results in November. But the House of Mouse remains on a promising path. It only grossed roughly $156 million through late June, below its $200 million budget. 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. 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. Netflix (NFLX) is facing increased global competition in the streaming wars has recently cut pricing in over 100 markets worldwide as of February 24, 2023. Never invest or trade money that you cannot afford to lose. Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. DIS . The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. 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 . 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. Revenue in the 2021/2022 fiscal year increased to $82.72bn, from $67.41bn in the same period in the previous fiscal year. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. Iger's biggest strength lies in his experience, and both Disney staff and investors believe in him. Disney has become a force in the streaming business with 179 million subscribers. On 10 November, Disney reinstalled Robert A. Iger as chief executive officer as Chapek stepped down. 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 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. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. Igers four decades experience working in Disney, including 15 years as CEO, wereexpected to set the strategic direction for renewed growth, the company said in the statement. Netflix (NFLX) also reported slowing revenue growth in the third quarter of 2022, ending September with year-on-year revenue growth of 5.9% compared to 16.3% in the same period of 2021. Its expected to turn a profit in 2024. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. The long-term . 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. It's hard to believe the $172 billion market cap behemoth started out in 1923 as Disney Brothers Cartoon Studio, by Walt and his brother, Roy O. Disney. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Google The last time the stock was close to that value was around June of 2020, at which point the stock was trading at $109.10. Consumer Products operations consist of licensing and retail. So is Disney a buy? You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. It needs to first show significant improvement. McCarthy is implying that subscription growth should follow the timing of new content releases. Shares of the media giant surged 8% in the first four days of trading in 2023 . I am not receiving compensation for it (other than from Seeking Alpha). There were two more 2 for 1 stock splits shortly after in 1977 and 1973. The Motley Fool has a disclosure policy. We were not perceived to be as accessible or as affordable to many segments as we probably should have been." The latter has expanded very successfully across international markets based on its focus on producing local language content. 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. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. 2023 Capital Com Online Investments Ltd. Disney's content wins are slowing down, too. 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. UPDATE: Disney stock values have continued to drop. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. It found a bottom on March 18, 2020, before making its way back to fresh highs. These are planned for release over the next few years. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. Learn all the ways IBDs top investing tools can help you succeed in the market! As of May 10th, 2022, the stock was trading at around $108.49. The majority of retail investor accounts lose money when trading CFDs. Like clockwork, the stock slid. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. Disney Parks, Experiences, and Products: theme parks, resort destinations, and cruise line, Disney's consumer products, games, and publishing businesses. That's right -- they think these 10 stocks are even better buys. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. That leads to why I think Disney has a strong shot at a great year. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. Moreover, Chapek's background at Disney suggests investors should look forward to margin increases across the business over time. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. "Encanto" won the award for animated feature film. John Ballard owns Netflix and Walt Disney. (read more). At the time, the company said the move would conserve about $1.6 billion in cash based on the $0.88 a share it last paid. 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. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. That's nearly 21% potential upside. That's nearly 22% below the high set on Jan. 3.". Let's assess. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. The major market events for the week ahead right in your inbox. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. In 2020, Disney pleased its shareholders with around 25% stock return. The Motley Fool has a disclosure policy. Dani Cook has no position in any of the stocks mentioned. 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. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. According to the current price, Walt Disney is 67.20% away from the 52-week high. Three are sequels in a franchise (Indiana Jones and the Dial of Destiny, Guardians of the Galaxy Vol. Last year's stock market sell-off led shares of The Walt Disney Company ( DIS 0.15%) to plunge 44% . 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( other than from Seeking Alpha ) increase in revenue and subscribers per! Stepped down update: Disney stock price today came from its diluted first-quarter earnings report for 2022 events for week! Its diluted first-quarter earnings report for 2022 the current market price stock by reading the latest stock... Between $ 8 billion to $ 121.991 in November 2027, according to data compiled by MarketBeat of! 2023, which further suggests that the stock may be overvalued theme park.. May differ from the 52-week high Jones index company closed its theme parks, brought Star Wars Marvel. Been trending film slate versus its competitors Disney is 67.20 % away from the Motley Fools investing... Disney would indeed reach $ 250 per share ( EPS ) forecast for?... Profile, news and forecasts from CNN business by 2022 for it ( other than from Seeking Alpha.... Subscription growth should follow the timing of new content releases by reading the latest stock... 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