Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. Is this happening to you frequently? Activist investors continue to play a cooperative role. 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. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. 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. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. 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. On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. However, the CEO responsible for Disney's golden years, Bob Iger, is back at the helm and on a mission to make streaming profitable. Disney stock has been a part of six stock splits since the IPO,The first post IPO stock split happened in 1967 which was a 2 for 1 stock split. 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 Disney's bottom line. 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. Although shares are down almost 16% from a year ago and 13% since the beginning of 2022, they've rallied over the past month and, as of the market close on Feb. 15, had regained their January loss. account day-to-day movements in market value compared to a companys liability structure. So is Disney a buy? And reopening movie theaters are boosting prospects for box-office sales. Disney's content wins are slowing down, too. which lost subscribers. The Motley Fool->. If you rely on the information on this page then you do so entirely on your own risk. The DMED segment encompasses the company's global film and episodic television content production and distribution activities. 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. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. 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. 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. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. 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. 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. Disney (DIS) is seeing the magic fade from its stock after gaining during the Covid-19 pandemic-induced boom experienced by streaming services. Disney is much more than Marvel. Historical Disney stock price data showed that from July 2017 to March 2019, the stock value fluctuated between $98 and $116 a share. The price, however, started to spike after 20 March 2019, following Disneys acquisition of 21st Century Fox. The recent rally, though, shows promise. Yield investors in Disney now have more choices for income than just Disney stock. 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. 10 stocks we like better than Walt DisneyWhen our award-winning analyst team has a stock tip, it can pay to listen. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. Type a symbol or company name. 3/01/2023 Like clockwork, the stock slid. 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. And he has the headache with Florida to deal with. Disney has also acquired several companies to reach wider audiences. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. Data source: IMDB. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. During the earnings conference call, Iger implied that he would not sell Hulu. This transformation is focused on operational efficiency. It had been sinking in the year since, but most recently moved below its 50-day moving average. Disney is not short of growth opportunities heading into 2022. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. 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. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. The material provided on this website is for information purposes only and should not be understood as an investment advice. 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. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. More freedom in that process should lead to content being provided in the right medium to make the most money. These numbers point toward Wall Street being in the claws of a . It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. 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. Ownership data provided by Refinitiv and Estimates data provided by FactSet. The median . It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. 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. So, we could see those Disney+ subscription numbers grow even more soon. Despite strong first-quarter results, Wall Street analysts have very different views on varying parts of the . We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. Disney Plus is also moving into new markets this coming year and the slowdown experienced toward the end of 2021 should abate. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. Authors may own the stocks they discuss. Disney is releasing seven other films outside of the MCU in 2023. And the gains are not over yet. Jennifer Saibil for The earnings number also surpassed the . 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. 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. Disneys stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. 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. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. If it . 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 Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. In 2020, Disney pleased its shareholders with around 25% stock return. Disney has become a force in the streaming business with 179 million subscribers. 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. Disneys stock price has significantly risen since its IPO. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. The creators know audiences love and wait for this content. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. In the fourth quarter of 2022, Parks & Experiences booked revenue of. The return of a dividend is a positive sign as it illustrates the company's financial confidence. Disney was also given the authority, which it never exercised, to build a nuclear power plant and an . I have always believed by the way, that accessibility is a core value of the Disney brand. Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? Get market updates, educational videos, webinars, and stock analysis. 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. Management said that range will now be higher, as they ramp up spending on local and regional content. Copy and paste multiple symbols separated by spaces. However, it was still way above the inflation target of 2%. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. It also spent less in . 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. This top entertainment stock should bounce back in 2022. Follow Matt Krantz on Twitter at @mattkrantz, View Breakout Stocks & Technical Analysis, Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest, Catch The Next Big Winning Stock With MarketSmith. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. Meantime, theme park revenue picked up. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. Disney is facing mounting pressure from its streaming business. Three are sequels in a franchise (Indiana Jones and the Dial of Destiny, Guardians of the Galaxy Vol. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. While Covid-19 restrictions have limited its themeparkoperations, Macker believed the segment will rebound after capacity restrictions are lifted, partly because families still view the parks as prime vacation destinations. The stock also remains down by almost 50% from highs seen in 2021. I have no business relationship with any company whose stock is mentioned in this article. But losses in the streaming business continue to hurt the business. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. We were not perceived to be as accessible or as affordable to many segments as we probably should have been." of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. "Encanto" won the award for animated feature film. 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 following year, Walt passed away, leaving Roy in charge. The Walt Disney Co. is a diversified international family entertainment and media enterprise. Netflix's stock has . 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. It booked earnings per share (EPS) of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. 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 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. Key Points. Do Not Sell My Personal Information (CA Residents Only). However, the company's shares remain down 33% over the past 12 months. Disneys valuation multiples are also reasonably compelling. Walt Disney World opened in 1971, two months before Roy's death. Please disable your ad-blocker and refresh. Learn More. 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. To make the world smarter, happier, and richer. Cost basis and return based on previous market day close. Dani Cook has no position in any of the stocks mentioned. Direct-to-Consumers (DTC) operating loss jumped to $1.47bn in the fourth quarter of fiscal2021/2022, from $630m in the previous fiscal year. Since reaching an all-time high closing price in March 2021. 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. 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. have dropped nearly 15% so far in 2022. In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. But given Netflix's operating margin of 23.5%,Disney+ should be a major contributor to Disney's bottom line. risk, allowing investors to make better decisions and streamline their work ow. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. 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