Disney CEO Bob Iger (Iger, hereinafter) said, ".. but let me also address the pricing side. 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. Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? DIS . However, Disney's recent success with Avatar: The Way of Water could mean audiences are truly back. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. The Marvel Cinematic Universe (MCU) has grossed more than twice the amount of the next-highest franchise, Star Wars -- also owned by Disney. Disney stock rose 13.6% on Dec. 11 following the announcements at the investors conference. BREAKING: Salesforce Soars Late, Tesla Doesn't Unveil New EV. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. "Encanto" won the award for animated feature film. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. It's been a wild ride on Wall Street since early 2020, as the stock market fell into a bear amid the coronavirus crash. I have no business relationship with any company whose stock is mentioned in this article. balance sheet and inputs from the stock market. But the House of Mouse remains on a promising path. 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. 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. Disney has grown its revenue and operating income steadily since 2020 despite various headwinds. Realtime quote and/or trade prices are not sourced from all markets. 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. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis, Market Crashes Compared.'. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. (Author's comments in January 2023. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Since reaching an all-time high closing price in March 2021. Some of the major properties licensed by the company include: Mickey and Minnie Mouse, Star Wars, Frozen, Disney Princess, Avengers, Spider-Man, Toy Story, Disney Classics, Winnie the Pooh and Cars. Disney stock predictions: Can Iger bring back Disneys magic? On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. 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. In August 2011 Disney saw its stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. That's right -- they think these 10 stocks are even better buys. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. 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 company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. For 2023 fiscal year, Disneyexpected to spend cash content in the low of $30bn and $6.7bn of capital expenditure, up from $5bn in the 2022 fiscal year, McCarthy said. 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. 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. Our priority is the enduring growth and profitability of our streaming business. 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. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. But Disney typically outperforms other media companies in ticket sales in any given year. In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. Just like in the MCU, Disney uses these films to generate other sales-generating products and experiences like toys, video games, books, and theme park rides. Moreover, Chapek's background at Disney suggests investors should look forward to margin increases across the business over time. We expect that Iger will unwind some of the major changes put in place by Chapek. Read on to find out. Additionally, Disney recently announced that they will be introducing a new ad-supported subscription option for Disney+ in 2022. 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 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. Consider Disney's 2022 film slate versus its competitors. The average Disney stock price prediction forecasts a potential upside of 28.69% from the current DIS share price of $101.68. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. Disney's revenue sources are divided into two streams. We expect the unique content on ESPN and Disney Channel will provide the firm with a softer landing than its peers as viewing transfers to an over-the-top world over the next decade, Macker added.. Disneys theme parks and resorts are almost impossible to replicate, especially considering the tie-ins with its franchises and other business lines, he said. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. 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. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Meantime, theme park revenue picked up. On a new IBD podcast, Jon Najarian explains 0DTE options and their unintended impact. Copy and paste multiple symbols separated by spaces. *Average returns of all recommendations since inception. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. The Motley Fool has a disclosure policy. 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. Moodys Daily Credit Risk Score is a 1-10 score of a companys credit risk, based on an analysis of the firms 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. Discovery . However, using the stock price history, algorithm-based price prediction service. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. 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. Disneys valuation multiples are also reasonably compelling. Ticket sales are a central element in recovering costs for expensive content, and in sending the right films to theaters to add to profitability without cutting into streaming efforts. Some investors may adopt a wait-and-see approach. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Is this happening to you frequently? The price, however, started to spike after 20 March 2019, following Disneys acquisition of 21st Century Fox. Disney has undergone a challenging few years, to say the least. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. 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. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 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. While its theme parks and cruise businesses got hit, the entertainment giant found success with its Disney+ streaming service. 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. If you are already a current owner of Disney shares, it may be advisable to hold onto the stock and give Iger's transformative restructuring a chance. To make the world smarter, happier, and richer. 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. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: It remains our number one priority. See our analysis of Disney revenue for a closer look at the companys key revenue streams and how they have been trending. However, the company's shares remain down 33% over the past 12 months. Invest better with The Motley Fool. 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. 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. Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. This sets the stage for a long-term vision for the company that focuses on the streaming business, margin improvement, cost reduction, and strategic reorganization. Revenue) or per share (e.g. -2.08%. But the market is making the mistake of extrapolating one quarter's growth way out into the future. Shares of the entertainment giant slid over 40% in 2022. The pandemic depleted its parks and box office revenue in 2020 and 2021. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. The Walt Disney Company is a diversified international family entertainment and media enterprise. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. 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. *Real-time prices by Nasdaq Last Sale. 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. Disneys stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. 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. Invest better with The Motley Fool. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. The stock price is currently down 14.5% year to date, trailing the 27% return of the S&P 500 index. The score provides a forward-looking, one-year measure of credit 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. Last year Disney films won 23 Oscar nominations. Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. Making the world smarter, happier, and richer. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. Capital Com is an execution-only service provider. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. 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 DPEP segment includes significant lines of business like parks and experiences and consumer products. The former provides licences on a diverse range of product categories, including toys, apparel, games, accessories, and footwear. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 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. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. Disney is facing mounting pressure from its streaming business. UPDATE: Disney stock values have continued to drop. We are not in any way stepping away from streaming. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. 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. Disney has been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. on Q1:2023 conference call on 2/8/2023. I have no business relationship with any company whose stock is mentioned in this article. And don't forget to keep an eye on the market's action. I have always believed by the way, that accessibility is a core value of the Disney brand. 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. 145.51 in 12 months with Capital.com, also you can afford to take high... 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