We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. But Disney typically outperforms other media companies in ticket sales in any given year. These numbers point toward Wall Street being in the claws of a . 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. It's one of Pixar's only bombs. We expect that Iger will unwind some of the major changes put in place by Chapek. The Walt Disney Co. is a diversified international family entertainment and media enterprise. During the earnings conference call, Iger implied that he would not sell Hulu. Since then, Marvel has been an incredible asset for Disney. 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. Disneys stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Disney has also seen a public relations crisis of sorts relating to its handling of Floridas controversial Parental Rights in Education legislation, which has, in turn, made Florida lawmakers pass legislation that would strip Disney of self-governing status in the state from next year. This will be Igers third transformation. Disney Entertainment: entertainment media and content businesses globally, including streaming. This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. Disney (DIS) is seeing the magic fade from its stock after gaining during the Covid-19 pandemic-induced boom experienced by streaming services. That legislation gave Disney taxing power over the 25,000 acres it had bought up so it could build roads, power plants, and water and sewage systems, using money it collected from itself through property taxes within the district boundaries. Why I rated Disney (NYSE:DIS) as a Sell in December 2022 is because of weak fundamentals, uncertainty surrounding the return of CEO Bob Iger, competition, and the highly variable financial performance of Disney, which is cyclical. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. 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. I have no business relationship with any company whose stock is mentioned in this article. Disney is not a buy right now. The following year, Walt passed away, leaving Roy in charge. 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. We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. . The stock price is currently down 14.5% year to date, trailing the 27% return of the S&P 500 index. The stock is currently changing hands at $160.95, down 7.74% from the start of trading. Revenue for fiscal '21 grew 20% to $72.99 billion. Its "Lightyear" film opened to disappointing results. This top entertainment stock should bounce back in 2022. All rights reserved. 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. 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 As noted earlier, fiscal '21 EPS rose. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). Let's assess. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. 2023 Capital Com Online Investments Ltd. 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. 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. NFLX You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. A month later, Disney stock price dropped below $30, which was a year to date low. Disney just began to tap into this pipeline in the last month. But the company kept growing. McCarthy is implying that subscription growth should follow the timing of new content releases. Then, economic declines in 2022 strained the streaming industry as people reduced discretionary spending. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. 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. But now it's trying to find its footing. In the earnings call on 8 November, CEO Bob Chapek said the company still expected to achieve profitability in fiscal 2024, with losses expected to decrease in the first quarter offiscal 2023 and no significant shifts in the economic environment. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. Disney was also given the authority, which it never exercised, to build a nuclear power plant and an . Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. Susannah Streeter, Hargreaves Lansdowns senior investment and markets analyst, said that while Disneys subscribers growth has been impressive, the revenue growth rate was expected to start slowing. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. Disney has also acquired several companies to reach wider audiences. The long-term . Learn all the ways IBDs top investing tools can help you succeed in the market! Additionally, Disney recently announced that they will be introducing a new ad-supported subscription option for Disney+ in 2022. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. The material provided on this website is for information purposes only and should not be understood as an investment advice. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. Disney reported a stronger than expected set of Q3 2022 results on Wednesday, sending the stock up by about 8% in pre-market trading on Thursday. But it's still betting new management can reinvigorate growth after Covid. Some investors may adopt a wait-and-see approach. And no, 2022 wasn't an exceptional year. 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. Meantime, theme park revenue picked up. Revenue) or per share (e.g. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. Walt Disney's (DIS) theme parks are bustling again following a long slow period during the pandemic. Dani Cook has no position in any of the stocks mentioned. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. Get these newsletters delivered to your inbox & more info about our products & services. 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. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. 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. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. Meantime, theme park revenue picked up. DPEPs operations has two main business lines: Parks & Experiences and Consumer Products. 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. If you rely on the information on this page then you do so entirely on your own risk. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). 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. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. Fourth-quarter revenue rose to $20.15bn from $18.53bn a year ago, but was 4.5% lower than consensus estimates polled by Zacks.com. Three are sequels in a franchise (Indiana Jones and the Dial of Destiny, Guardians of the Galaxy Vol. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. Remember that markets are volatile, and that past performance cannot guarantee future results. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. The creators know audiences love and wait for this content. The name was changed to The Walt Disney Studio at Roys suggestion. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. 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. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Consider Disney's 2022 film slate versus its competitors. Stock Price Forecast. To make the world smarter, happier, and richer. The 26 analysts offering 12-month price forecasts for Walt Disney Co have a median target of 130.00, with a high estimate of 141.00 and a low estimate of 94.00. 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. Its clear that some of our pricing initiatives were alienating to consumers. Formerly with Fidelity Investments, Dean Witter Investment Management, Citibank - Amsterdam, Eli Lilly - Brussels, Thomson Financial (aka Thomson Reuters), NYC gov., and Apple, Inc. Graduate of Baruch College CUNY, NYU College of Arts and Sciences, and Erasmus University (Rotterdam School of Management) in that order. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. Studios, General Entertainment and Sports create the content. 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). Shares of Disney are down nearly 25% this year, making it one of the worst Dow stocks. 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. Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Several catalysts led to Disney stock price to increase in 2023. Disney has grown its revenue and operating income steadily since 2020 despite various headwinds. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Please. 86% of retail CFD accounts lose money, Analysts Have Strong Buys on These 2 Beaten-Down Stocks. In the past, Peltz's involvement has led to positive changes in the companies he has worked with. What if youre looking for a more balanced portfolio instead? Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. 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. However, the streaming business remains cash-intensive with Disney ramping up content spending by $8 billion this year to support its Direct to consumer offering, while projecting that the business will only be profitable in 2024. And reopening movie theaters are boosting prospects for box-office sales. 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. Disney has become a force in the streaming business with 179 million subscribers. can generate Disneys stock price forecast beyond 2022. You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. Iger has already answered the second question by tweaking the internal structure and organizing Disney into three core business segments as follows: Iger has no plans to sell ESPN and should not sell Hulu. Disney Parks, Experiences, and Products: theme parks, resort destinations, and cruise line, Disney's consumer products, games, and publishing businesses. Opinions expressed by Forbes Contributors are their own. 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). 3/01/2023 Making the world smarter, happier, and richer. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. -2.08%. ESPN remains the premier domestic sports television network due to its extensive sports programming. Source: FactSet. 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. Discovery . *Real-time prices by Nasdaq Last Sale. Authors may own the stocks they discuss. Disney stock has seen a major sell-off this year, declining by almost 37% year-to-date, considerably underperforming the S&P 500 which remains down by 19% over the same period. Disney is facing mounting pressure from its streaming business. Can Disney fight its way out of the slump? 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. 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. 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." Image source: Walt Disney. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. 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. It actually lost subscribers in the fourth quarter, and losses were still staggering. 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. There are several factors weighing the stock down. The US Consumer Price Index (CPI) was running at an annual rate of 7.7% in October, easing from the peak of 9.1% in June. 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 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. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. 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. 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