Media and . In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Electric vehicle startup Fisker said Monday it remains on track to begin deliveries of its Ocean SUV this spring and to build more than 40,000 vehicles in 2023. These symbols will be available throughout the site during your session. DIS. Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). 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+. Historical Disney stock price data showed that from July 2017 to March 2019, the stock value fluctuated between $98 and $116 a share. 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. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Since 2020, the House of Mouse's free cash flow has declined from $2.6 billion to $94 million in 2022. According to Variety, Disney spent about $460 million producing and promoting the film. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. 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. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. And don't forget to keep an eye on the market's action. The Marvel Cinematic Universe (MCU) has grossed more than twice the amount of the next-highest franchise, Star Wars -- also owned by Disney. Finally, Disney made a decision to work on its pricing strategy. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. The material provided on this website is for information purposes only and should not be understood as an investment advice. It's on a promising growth path and is home to franchises that will likely take its streaming venture far. The Motley Fool has a disclosure policy. Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! 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. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. 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. Type a symbol or company name. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. But its parks and experiences segment is struggling, and the balance sheet has a lot of debt. But now it's trying to find its footing. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. BREAKING: Salesforce Soars Late, Tesla Doesn't Unveil New EV. Disney CEO Bob Iger (Iger, hereinafter) said, ".. but let me also address the pricing side. 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. 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. So is Disney a buy? Capital Com Online Investments Ltd is a limited liability company with company number 209236B. View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. Studios, General Entertainment and Sports create the content. The parks segment has recovered well, with revenue nearly doubling year over year in the fiscal fourth quarter. 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 in addition to streaming content and other products. As a result, Disney has a lot of work ahead to return to its pre-pandemic form. financial performance of Disney, which is cyclical. Find the latest The Walt Disney Company (DIS) stock quote, history, news and other vital information to help you with your stock trading and investing. Disney has undergone a challenging few years, to say the least. Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. Consider Disney's 2022 film slate versus its competitors. 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. Jennifer Saibil for On 10 November, Disney reinstalled Robert A. Iger as chief executive officer as Chapek stepped down. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). 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. 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. The former provides licences on a diverse range of product categories, including toys, apparel, games, accessories, and footwear. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. 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. 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. The Motley Fool->. 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. OK, Avatar: The Way of Water was an exceptional film, becoming the third highest-grossing film ever in a matter of weeks. Get the latest Netflix news, plus stock quotes and analysis. Plus500. Authors may own the stocks they discuss. On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. 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. 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. 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. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. 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. Over Q2 FY22, Disneys Parks, Experiences, and Products segments results came in ahead of expectations at $6.7 billion, marking an increase of 110% year-over-year, despite this being a seasonably weak quarter which also saw a surge in omicron-related Covid cases. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. 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. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. 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. Walt Disney World opened in 1971, two months before Roy's death. 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. Learn More. The latter has expanded very successfully across international markets based on its focus on producing local language content. 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. After the August 10 close, Disney reported higher-than-expected fiscal Q3 earnings, as Disney+ streaming subscriptions came up strong. Get these newsletters delivered to your inbox & more info about our products & services. Cost basis and return based on previous market day close. Adding all this up, the Disney+ service is clearly being undervalued by the market right now. Currently, Disney owns about 67% of Hulu. Copy and paste multiple symbols separated by spaces. 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. The California-based companys businesses include media networks, studio entertainment, interactive media, consumer products, theme parks and resorts. 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. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. The Walt Disney Company is a diversified international family entertainment and media enterprise. Dani Cook has no position in any of the stocks mentioned. 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. You'll want to wait until the market is in a confirmed uptrend, which means investors can buy leading stocks at proper buy points. It's still recovering, but hit films are drawing in viewers. Please disable your ad-blocker and refresh. The earnings number also surpassed the . Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. While its theme parks and cruise businesses got hit, the entertainment giant found success with its Disney+ streaming service. Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. 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 . In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. Updated daily, it takes into CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. 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. What if youre looking for a more balanced portfolio instead? 86% of retail CFD accounts lose money, Analysts Have Strong Buys on These 2 Beaten-Down Stocks. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. 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. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. Subscribers of Disney+ Hotstar were projected to decline in the first quarter2022/2023 after it lost rights to air the Indian Premier League (IPL) cricket games. The stock also remains down by almost 50% from highs seen in 2021. Discovery. Yield investors in Disney now have more choices for income than just Disney stock. 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 Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. 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 Three are sequels in a franchise (Indiana Jones and the Dial of Destiny, Guardians of the Galaxy Vol. ESPN: ESPN Networks, ESPN+, and international sports channels. 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. Invest better with The Motley Fool. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. Disney aims to reduce its debt. In the fourth quarter of 2022, Parks & Experiences booked revenue of. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. In other words, the majority of Disney's theater content is almost no-brainer efforts. 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 $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. 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. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? Disclosure: 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 Walt Disney Co. is a diversified international family entertainment and media enterprise. 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. Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. I wrote this article myself, and it expresses my own opinions. There are 1.82 billion Disney shares outstanding, which places the stocks total value at $174.30bn as of 30 November 2022, according to Companiesmarketcap. Disney is not a buy right now. The difference between trading assets and CFDs. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. If you rely on the information on this page then you do so entirely on your own risk. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. Key Points. Discovery. 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. Iger has the task of finding a new CEO for Disney within the next 12-18 months. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. The stock hit an all-time high closing price of $201 on 8 March 2021, after California announced it would allow ballparks, stadia and theme parks to reopen for outdoor activities starting 1 April 2021. Dividend). In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. 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%. Iger is getting his ducks in order in his third transformation. The number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. Consumer Products operations consist of licensing and retail. 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. 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. This top entertainment stock should bounce back in 2022. have dropped nearly 15% so far in 2022. Is this happening to you frequently? Netflix's stock has . Florida is home to Disney's largest theme park complex. 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. During the earnings conference call, Iger implied that he would not sell Hulu. While the decline was substantial, the entertainment company actually fared better than its biggest competitors, Netflix and Warner Bros. 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. Activist investors continue to play a cooperative role. That's nearly 21% potential upside. But we are not going to abandon the linear or the traditional platforms while they can still be a benefit to us and our shareholders.. The Motley Fool has a disclosure policy. Since reaching an all-time high closing price in March 2021. 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. 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. Disney stock predictions: Can Iger bring back Disneys magic? Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. (Author's comments in January 2023. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? John Ballard owns Netflix and Walt Disney. Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. A. 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