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. 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. 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 Disney stock is now trading around levels last seen around April 2020 just as the first set of Covid-19 lockdowns roiled the broader markets. financial performance of Disney, which is cyclical. This news was received favorably by investors. During the earnings conference call, Iger implied that he would not sell Hulu. Consider Disney's 2022 film slate versus its competitors. Disney Parks, Experiences and Products segment sales jumped 70% to $7.4 billion in Q3. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. Invest better with The Motley Fool. Disney's shares haven't done well in the past year as well. The Motley Fool owns and recommends Netflix and Walt Disney. The new "Star Wars" original series releases Dec. 29 on Disney+. Disneys stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. 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. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. It earned adjusted earnings of $1.09 a share on revenue of $21.5 billion vs. S&P Global Market Intelligence forecasts for $0.99 on $21.0 billion. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. The creators know audiences love and wait for this content. 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. The stock also remains down by almost 50% from highs seen in 2021. Our priority is the enduring growth and profitability of our streaming business. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. 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. The company added 14.6 million new subscriptions from its streaming service in the fourth quarter, bringing its total subscriptions for 2021/2022 to more than 235 million, said Chapek. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. 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. Is this happening to you frequently? The other two are Pixar's Elemental and Walt Disney Studios' Haunted Mansion. The 64 analysts offering price forecasts for Walt Disney. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. Disneys stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. It actually lost subscribers in the fourth quarter, and losses were still staggering. DIS stock closed at $100.45 on 2/27/2023 on the day of writing. Disney's stock has shown signs of recovery since the start of 2023, rising over 10% year to date as investors grow optimistic about the entertainment industry again. Read on to find out. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. And as you can see below, BABA beat on both top . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Updated daily, it takes into Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. 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. 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. Localized content can drive worldwide subscriber growth. DIS is relatively overvalued on two common measures compared to its competitors. Is it profitable to invest in Walt Disney Co (The) stock? We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Revenue in the 2021/2022 fiscal year increased to $82.72bn, from $67.41bn in the same period in the previous fiscal year. 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. balance sheet and inputs from the stock market. Its clear that some of our pricing initiatives were alienating to consumers. If Disney decides to reinstate its dividend, it may have a minimal impact on shareholder value. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. DIS . This will be Igers third transformation. Box N-4865, Nassau, Bahamas. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Discovery . Google 86% of retail CFD accounts lose money, Analysts Have Strong Buys on These 2 Beaten-Down Stocks. Iger is getting his ducks in order in his third transformation. The difference between trading assets and CFDs. 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. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. 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. 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. Dani Cook has no position in any of the stocks mentioned. That's nearly 21% potential upside. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. I have no business relationship with any company whose stock is mentioned in this article. Since reaching an all-time high closing price in March 2021. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. That leads to why I think Disney has a strong shot at a great year. Disney is much more than Marvel. These symbols will be available throughout the site during your session. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. We were not perceived to be as accessible or as affordable to many segments as we probably should have been." 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. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. 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 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. UPDATE: Disney stock values have continued to drop. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. Do Not Sell My Personal Information (CA Residents Only). DMED covers global film and episodic television content production and distribution activities. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. Learn all the ways IBDs top investing tools can help you succeed in the market! The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. 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. That includes Pixar's "Luca," "Raya and the Last Dragon" and "Encanto." When looking for Disney stock projections, remember that analysts and algorithm-based predictions can be wrong, and shouldnt be used as a substitute for your own research. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. This overvaluation may be due to investors' confidence that growth will increase following Iger's restructuring efforts. 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. We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. Discovery. 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. It's worth watching, though, to see how the media giant fares now that its theme parks, cruises and movie theaters are back in action. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. 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). IsDisney stockis a buy right now? I am not receiving compensation for it (other than from Seeking Alpha). Previously the Walt Disney Co. issued its first stock through 6% cumulative preferred shares in 1940 where it was traded OTC (Over The Counter). The demographic difference in age is tremendous. Shares of Disney are down nearly 25% this year, making it one of the worst Dow stocks. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. Revenue for fiscal '21 grew 20% to $72.99 billion. We. During Igers leadership from 2005 to 2020, Disney expanded its business with acquisitions of blockbuster-producing film studios Pixar, Marvel, Lucasfilm and 21st Century Fox. 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! ESPN remains the premier domestic sports television network due to its extensive sports programming. Consider Disney's 2022 film slate versus its competitors. 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. 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 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. CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. 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