Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. financial performance of Disney, which is cyclical. Realtime quote and/or trade prices are not sourced from all markets. The first memo Iger sent out in his smashing return to the CEO role centered around giving Disney's creatives more control in the distribution process. Source: FactSet. The firm expects to see 240M to 260M subs just for Disney Plus by. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. Cost basis and return based on previous market day close. Updated daily, it takes into Overwhelmingly, 65.4% of Benzinga traders and investors said Disney would indeed reach $250 per share by 2022. 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. 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. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. 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. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. Image source: Walt Disney. Making the world smarter, happier, and richer. Iger's success in his previous transformations makes it possible for him to succeed in his third transformation. Shareholders seemed most excited about the new streaming forecasts, as the company now expects to reach . Disney has grown its revenue and operating income steadily since 2020 despite various headwinds. The China Trade: Demand Boom or Inflationary Bust? This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. 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 company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. However, Disney's recent success with Avatar: The Way of Water could mean audiences are truly back. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. 10 stocks we like better than Walt DisneyWhen our award-winning analyst team has a stock tip, it can pay to listen. While revenue rose 26% year-over-year to. Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! 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 balance sheet and inputs from the stock market. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? This measure against the company poses a political risk, as it may waste management's time and resources. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. Read on to find out. 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 Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. 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. After the August 10 close, Disney reported higher-than-expected fiscal Q3 earnings, as Disney+ streaming subscriptions came up strong. The California-based companys businesses include media networks, studio entertainment, interactive media, consumer products, theme parks and resorts. Walt Disney Co (The) Stock Price Forecast for 2022: November 2022: Open: 110.038: Close: 112.286: Copy and paste multiple symbols separated by spaces. 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. ). He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. Get market updates, educational videos, webinars, and stock analysis. According to the numbers, the earnings per share hit $1.06. 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). See our analysis of Disney valuation for more information on whats driving our price estimate for Disney and how its valuation compares with peers. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. 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. 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). Disney is taking a page out of Netflix's playbook. 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. 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 stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. The Walt Disney Company ( DIS -1.07%) is the subject of a wide range of opinions. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. The demographic difference in age is tremendous. 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. It only grossed roughly $156 million through late June, below its $200 million budget. The following catalysts were responsible for the increase in Disney's stock price from the date of my sell rating until 2/9/2023: On 1/11/2023, Disney announced the appointment of board member Mark Parker, who is also Nike's executive chairman, as the new chairman of the board. Disney stock predictions: Can Iger bring back Disneys magic? I have always believed by the way, that accessibility is a core value of the Disney brand. 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." Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. It should be noted that conditions have already begun to change. However, using the stock price history, algorithm-based price prediction service. |. 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 number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. 2022 highest-grossing films by parent company. There's just so much to unpack when it comes to the world's largest (and perhaps most complex) entertainment company. If you have an ad-blocker enabled you may be blocked from proceeding. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. However, whether Disney stock is a good buy will depend on your investing goals and portfolio composition. In 2020, Disney pleased its shareholders with around 25% stock return. Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. A second location in Orlando, Fla., was announced in 1965. But the big one was released on Dec. 29, a new Star Wars original series called The Book of Boba Fett. 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. Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. Please disable your ad-blocker and refresh. More freedom in that process should lead to content being provided in the right medium to make the most money. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 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. 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. At the time, Iger said he would stay on until the end of 2021 as executive chairman and direct the company's creative endeavors. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. 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. DTCs full year 2021/2022 revenue was up 8% to $55.04bn, from $50.86bn during the same period a year earlier. Key price drivers. Create your Watchlist to save your favorite quotes on Nasdaq.com. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. So, we could see those Disney+ subscription numbers grow even more soon. Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). Never invest or trade money that you cannot afford to lose. The Motley Fool owns and recommends Netflix and Walt Disney. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. 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. Disney's shares haven't done well in the past year as well. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The company reports fiscal fourth-quarter results in November. The Motley Fool has a disclosure policy. Do Not Sell My Personal Information (CA Residents Only). The name was changed to The Walt Disney Studio at Roys suggestion. The pandemic depleted its parks and box office revenue in 2020 and 2021. Direct-to-Consumers (DTC) operating loss jumped to $1.47bn in the fourth quarter of fiscal2021/2022, from $630m in the previous fiscal year. However, it was still way above the inflation target of 2%. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). Last year's stock market sell-off led shares of The Walt Disney Company ( DIS 0.15%) to plunge 44% . Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. 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. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. Disney aims to reduce its debt. 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. Let's assess. Revenue for fiscal '21 grew 20% to $72.99 billion. Wall Street analysts do not provide long-term Disney share price projections. 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. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. The difference between trading assets and CFDs. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. Revenue in the 2021/2022 fiscal year increased to $82.72bn, from $67.41bn in the same period in the previous fiscal year. Profitable by the end of 2024 Bullish Pause the stock currently will disney stock go up in 2022 at just over times... 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