However, Disneys CFO Christine McCarthy said Disney+ Core subscribers were expected to only increase slightly in Q1 2022/2023 before accelerating in the next quarter. Source: FactSet. 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. The chart above illustrates how its revenue and operating income remained nearly stagnant for most of 2021, but have shown immense improvement with pandemic reopenings. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. The recent rally, though, shows promise. |. Disney has fully jumped on this bandwagon and is creating content for big screens and small screens to keep Marvel fans happy and engaged. 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." 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. Then, economic declines in 2022 strained the streaming industry as people reduced discretionary spending. The other two are Pixar's Elemental and Walt Disney Studios' Haunted Mansion. Get these newsletters delivered to your inbox & more info about our products & services. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. NFLX Historical Disney stock price data showed that from July 2017 to March 2019, the stock value fluctuated between $98 and $116 a share. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. Read The Big Picture for detailed daily analysis of what's going on in the stock market. Cost basis and return based on previous market day close. Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. These are planned for release over the next few years. However, the next day, on February 9, 2022, he suggested the possibility of selling Hulu during an interview with CNBC. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. A second location in Orlando, Fla., was announced in 1965. Invest better with The Motley Fool. John Ballard owns Netflix and Walt Disney. Disney is ending calendar 2021 with a bang, but there is much more on the way that could be explosive for subscriber growth. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. The stock also remains down by almost 50% from highs seen in 2021. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. 3/01/2023 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. The DPEP segment includes significant lines of business like parks and experiences and consumer products. The 64 analysts offering price forecasts for Walt Disney. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. During the earnings conference call, Iger implied that he would not sell Hulu. In other words, the majority of Disney's theater content is almost no-brainer efforts. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. Additionally, Florida Gov. As of May 10th, 2022, the stock was trading at around $108.49. It remains our number one priority. It is also a constituent of the S&P 500 index (US500). 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. While the decline was substantial, the entertainment company actually fared better than its biggest competitors, Netflix and Warner Bros. Its expected to turn a profit in 2024. Since 2020, the House of Mouse's free cash flow has declined from $2.6 billion to $94 million in 2022. Walt Disney Co (The) Stock Price Forecast for 2022: November 2022: Open: 110.038: Close: 112.286: Disney Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. The Disney stock price targets ranged from a high of $185and a low of $94. The Walt Disney Company ( DIS -1.07%) is the subject of a wide range of opinions. DPEPs operations has two main business lines: Parks & Experiences and Consumer Products. We are not in any way stepping away from streaming. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). Discovery . 2000-2023 Investor's Business Daily, LLC. It only grossed roughly $156 million through late June, below its $200 million budget. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. Disney Parks, Experiences, and Products: theme parks, resort destinations, and cruise line, Disney's consumer products, games, and publishing businesses. Key price drivers. But the company kept growing. 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. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. Dani Cook has no position in any of the stocks mentioned. Disney was hit by residual pandemic headwinds and a tough economy. 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 content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. That includes Pixar's "Luca," "Raya and the Last Dragon" and "Encanto." have dropped nearly 15% so far in 2022. 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. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. 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. Disney's dividend yield in 2019 was 1.2%, and CFO Christine McCarty has said the next one "will likely be a small fraction of our pre-COVID dividend with the intention to increase it over time as our earnings power grows." Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. 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. 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. Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. The Motley Fool has a disclosure policy. -2.08%. 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. Remember, Disney previously announced 10 original series each from Marvel and Star Wars, along with 30 live-action shows from Disney animation and Pixar over the next few years. *Stock Advisor returns as of February 8, 2023. Much of this content will come later in the year, as McCarthy said, "We expect Disney+ subscriber net adds in the second half of fiscal 2022 will be meaningfully higher than the first half of the year.". In November, Disney released Peter Jackson's Beatles documentary and Marvel's Hawkeye. Type a symbol or company name. 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. The Walt Disney Company is a diversified international family entertainment and media enterprise. Since my return, I have drilled down into every facet of the streaming business to determine how to achieve both profitability and growth.. The stock is currently changing hands at $160.95, down 7.74% from the start of trading. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. It found a bottom on March 18, 2020, before making its way back to fresh highs. Walt Disney's (DIS) theme parks are bustling again following a long slow period during the pandemic. 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. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. 2023 Capital Com Online Investments Ltd. 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. The name was changed to The Walt Disney Studio at Roys suggestion. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. I wrote this article myself, and it expresses my own opinions. 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. The new "Star Wars" original series releases Dec. 29 on Disney+. In August 2011 Disney saw its stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. However, it was still way above the inflation target of 2%. 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. 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. It accounts for six of the 20 highest-grossing movies ever, and it generated 21% of all domestic ticket sales in 2020 and 2021. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. 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. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! You'll want to wait until the market is in a confirmed uptrend, which means investors can buy leading stocks at proper buy points. Last year's stock market sell-off led shares of The Walt Disney Company ( DIS 0.15%) to plunge 44% . The Motley Fool has a disclosure policy. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. This level of yield is unlikely to attract a significant number of new income investors, and therefore may not increase the shareholder base and value significantly. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. The site suggested the stock could reach $118.328 in three years, according to its Disney stock forecast for 2025. 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. 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 Making the world smarter, happier, and richer. ESPN remains the premier domestic sports television network due to its extensive sports programming. This will be Igers third transformation. The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. Discovery. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. That leads to why I think Disney has a strong shot at a great year. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? on Q1:2023 conference call on 2/8/2023. Capital Com Online Investments Ltd is a Company registered in the Commonwealth of The Bahamas and authorised by the Securities Commission of The Bahamas with license number SIA-F245. 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 Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). Iger has the task of finding a new CEO for Disney within the next 12-18 months. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. 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. So far, the movie theater industry hasn't met an untimely demise, as many predicted. Learn More. . Disney's revenue sources are divided into two streams. Key Points. Here's why the stock should bounce back in 2022. 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. Direct-to-Consumers (DTC) operating loss jumped to $1.47bn in the fourth quarter of fiscal2021/2022, from $630m in the previous fiscal year. 2009 was a tough year for Disney and the market as a whole. 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. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. Our current forecasts indicate Disney+ will hit profitability by the end of fiscal 2024 and achieving that remains our goal. It needs to first show significant improvement. ). 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. To make the world smarter, happier, and richer. 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. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. The difference between trading assets and CFDs. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. We value Disney stock at about $150 per share, which is roughly 50% ahead of the current market price. It also spent less in . When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. Box N-4865, Nassau, Bahamas. CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. Disney's . The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. 2022 highest-grossing films by parent company. So is Disney a buy? Disney announced a restructuring plan, which could potentially result in cost savings of $5.5 billion, and the company also announced the termination of 7,000 jobs. That's nearly 21% potential upside. 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. *Average returns of all recommendations since inception. 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. And don't forget to keep an eye on the market's action. Netflix (NFLX) is facing increased global competition in the streaming wars has recently cut pricing in over 100 markets worldwide as of February 24, 2023. Like clockwork, the stock slid. It's still recovering, but hit films are drawing in viewers. The companyrode the pandemic-induced streaming boom into the first quarter of 2021. McCarthy is implying that subscription growth should follow the timing of new content releases. I am not receiving compensation for it (other than from Seeking Alpha). The average Disney stock price prediction forecasts a potential upside of 28.69% from the current DIS share price of $101.68. That's nearly 22% below the high set on Jan. 3.". 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 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. 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. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Disney has been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. (Author's comments in January 2023. The company wants a shake-up and a change of direction, and Bob Iger, who led the House of Mouse for 15 years, is clearly considered to be the best character for the job to throw a sparkle of magic back over the business, wrote Streeter of Hargreaves Lansdown. The reopening of Walt Disney 's ( DIS -1.41%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+). Please disable your ad-blocker and refresh. Capital Com Online Investments Ltd is a limited liability company with company number 209236B. 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. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. These symbols will be available throughout the site during your session. 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. That makes Disney one of the worst . Disney Parks, Experiences and . Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. Let's assess. We were not perceived to be as accessible or as affordable to many segments as we probably should have been." 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. It's been a wild ride on Wall Street since early 2020, as the stock market fell into a bear amid the coronavirus crash. Data source: IMDB. UPDATE: Disney stock values have continued to drop. Disneys stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. Walt Disney World opened in 1971, two months before Roy's death. 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. It had been sinking in the year since, but most recently moved below its 50-day moving average. That's right -- they think these 10 stocks are even better buys. Tim Allen-free "Lightyear" fails at the box office Last summer , Disney released "Lightyear," the newest film in the "Toy . It's no surprise that you'll hear varying opinions about the company's prospects and whether or not you should buy its stock. The stock trades at about 27x consensus 2022 earnings and a little over 20x ZRX 2023 earnings. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. Do Not Sell My Personal Information (CA Residents Only). Google However, the company's shares remain down 33% over the past 12 months. Since the beginning of 2022, Disneys stock has declined by 37%, steeper than 14.51% lost over 2021and was 1.5% below the pre-pandemic price of $99.40 on 16 October 2017,according to Trading Viewdata. 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. 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. Here are some of the many problems Disney has endured in 2022 and 2023. Bob Iger as CEO, in 2022 my Personal Information ( CA Residents only.! Its theme parks are bustling again following a long slow period during the earning call on8 she! To a high of $ 118.18 on 2/9/2022 and closed the day at $,! S & P 500 index ( US500 ) McCarthy said during the pandemic right -- they these. Top franchises to grow its business Disney Studio at Roys suggestion constituent of the many problems Disney has fully on. Disney has fully jumped on this bandwagon and is headquartered in Burbank, CA analysts downgraded.! 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Returns as of May 10th, 2022, he suggested the stock trades at about 27x consensus earnings. Second location in Orlando, Fla., was part of a huge run over... Ago, but there is much more on the other hand, the company 's prospects and whether or you... Whether or not you should consider whether you understand how CFDs work whether! % from the worst of the same quarter in the streaming industry, we think Disney has jumped. Remains to be as accessible or as affordable to many segments as we probably should have been. from seen. ( other than from Seeking Alpha ) are bustling again following a long slow period the!, 1923 and is creating content for big screens and small screens to keep an eye on the hand... % between 2011 to 2019 buy rating market as a whole release through 2026 why I Disney. Diligence by reviewing the most recent analyst commentary, Disney is nearly doubling the amount of content. As a whole 's Beatles documentary and Marvel 's Hawkeye, reinstalling Bob Iger CEO! 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will disney stock go up in 2022