However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. Last year Disney films won 23 Oscar nominations. Key Points. These symbols will be available throughout the site during your session. You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. *Real-time prices by Nasdaq Last Sale. On the business side, Morningstars maintained its view that the firms direct-to-consumers products, such as Disney+, Hotstar, Hulu, and ESPN+ are set to be the drivers of its long-term growth. Written by 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). Since 2020, the House of Mouse's free cash flow has declined from $2.6 billion to $94 million in 2022. The 64 analysts offering price forecasts for Walt Disney. 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. However, the next day, on February 9, 2022, he suggested the possibility of selling Hulu during an interview with CNBC. 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. Overwhelmingly, 65.4% of Benzinga traders and investors said Disney would indeed reach $250 per share by 2022. 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. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. Plus500. Disney has also acquired several companies to reach wider audiences. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. 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. 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. And the gains are not over yet. This top entertainment stock should bounce back in 2022. Consider Disney's 2022 film slate versus its competitors. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. 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. Jennifer Saibil for Wall Street analysts do not provide long-term Disney share price projections. He has credibility. Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! * Average Estimates in Million (e.g. 3/01/2023 This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. There are several potential catalysts that could lead to higher share prices, including the announcement of a new CEO in the next 18-24 months (If the new CEO has the same credibility Iger has), potential growth in streaming by gaining market share, a rationalized pricing policy, cost cuts, the success of a new blockbuster show due to increased creativity, lower debt levels, keeping ESPN and buying the rest of Hulu, and, most importantly, having activist managers advising and standing behind Iger. The stock price is currently down 14.5% year to date, trailing the 27% return of the S&P 500 index. During the earnings conference call, Iger implied that he would not sell Hulu. So is Disney a buy? call +44 20 3097 8888 support@capital.com. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. (read more). A second location in Orlando, Fla., was announced in 1965. To make the world smarter, happier, and richer. That's nearly 21% potential upside. Disney was hit by residual pandemic headwinds and a tough economy. 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. The major market events for the week ahead right in your inbox. 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. Chart by author. 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! Disney stock rose 13.6% on Dec. 11 following the announcements at the investors conference. Its like 60-years-old or around, estimating on ABC and then the 30s on, ( https://www.streetinsider.com/dividend_history.php?q=DIS), (Yahoo Finance: Disney Relative Valuation 2/27/2023). . The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. 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. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. Activist investors continue to play a cooperative role. Privacy Policy & Terms of Use. Dani Cook has no position in any of the stocks mentioned. In 2020, Disney pleased its shareholders with around 25% stock return. 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. movie and theme park attendance and ratings for Disney-owned ABC and ESPN is up for debate. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Moreover, Chapek's background at Disney suggests investors should look forward to margin increases across the business over time. The pandemic depleted its parks and box office revenue in 2020 and 2021. 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. According to Variety, Disney spent about $460 million producing and promoting the film. The Walt Disney Company is a diversified international family entertainment and media enterprise. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. 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. And as you can see below, BABA beat on both top . The following year, Walt passed away, leaving Roy in charge. 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. The stock trades at about 27x consensus 2022 earnings and a little over 20x ZRX 2023 earnings. 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. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. Key Points. Disney stock is listed on the New York Stock Exchange (NYSE) under the ticker DIS. 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." 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 Google Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. However, using the stock price history, algorithm-based price prediction service Wallet Investor can generate Disneys stock price forecast beyond 2022. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Management said that range will now be higher, as they ramp up spending on local and regional content. And reopening movie theaters are boosting prospects for box-office sales. Its clear that some of our pricing initiatives were alienating to consumers. Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The stock is now more than 35% off its 52-week high, according to IBD MarketSmith chart analysis. 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. Is it profitable to invest in Walt Disney Co (The) stock? Adding all this up, the Disney+ service is clearly being undervalued by the market right now. Its expected to turn a profit in 2024. Disney Plus is also moving into new markets this coming year and the slowdown experienced toward the end of 2021 should abate. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. What if youre looking for a more balanced portfolio instead? Disney Entertainment: entertainment media and content businesses globally, including streaming. Disney CEO Bob Iger (Iger, hereinafter) said, ".. but let me also address the pricing side. This measure against the company poses a political risk, as it may waste management's time and resources. 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." Theme parks have been propping up the business, and they are clearly highly resilient assets, but there will also be concerns that as a cost-of-living crisis wages in key markets, it could see ticket sales or merchandise revenue weaken, Streeter wrote in a note on 21 November. And so we are going to monitor it very carefully. 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. 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 reopening of Walt Disney's (DIS -1.07%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+) wasn't enough to push the stock higher in 2021. The former provides licences on a diverse range of product categories, including toys, apparel, games, accessories, and footwear. Discovery. Disney has undergone a challenging few years, to say the least. The demographic difference in age is tremendous. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. Opinions expressed by Forbes Contributors are their own. DIS is relatively overvalued on two common measures compared to its competitors. Copy and paste multiple symbols separated by spaces. Additionally, Florida Gov. Disney is facing mounting pressure from its streaming business. 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. Is this happening to you frequently? balance sheet and inputs from the stock market. The Motley Fool owns and recommends Netflix and Walt Disney. Disney stock predictions: Can Iger bring back Disneys magic? The majority of retail investor accounts lose money when trading CFDs. Invest better with The Motley Fool. Throughout its near century-long history, Disney has grown into a multi-billion-dollar business, famous for its flagship family-oriented brands. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. 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. Yes. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. Source: FactSet. DTCs full year 2021/2022 revenue was up 8% to $55.04bn, from $50.86bn during the same period a year earlier. Create your Watchlist to save your favorite quotes on Nasdaq.com. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. DIS closed at $138.72 as of March 28, 2022 is -32% below its all-time peak. Not provide long-term Disney share price on a downward spiral in 2021 residual pandemic headwinds and a Little over ZRX! 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