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. Disney Parks, Experiences and Products segment sales jumped 70% to $7.4 billion in Q3. I have no business relationship with any company whose stock is mentioned in this article. Get these newsletters delivered to your inbox & more info about our products & services. Read The Big Picture for detailed daily analysis of what's going on in the stock market. 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. As of 1 December, 22 analysts tracked by Market Beat recommended a moderate buy rating for Disney stock, while 19 recommended a buy and three gavea hold rating. The Walt Disney Company is a diversified international family entertainment and media enterprise. 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. *Real-time prices by Nasdaq Last Sale. Iger has the task of finding a new CEO for Disney within the next 12-18 months. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. 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. As we've mentioned before, subscriber growth will not be linear each and every quarter, and the trend is driven by several factors, including content releases and promotions, McCarthyadded. These symbols will be available throughout the site during your session. He has credibility. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. It is in many respects, our future. "Encanto" won the award for animated feature film. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. Meantime, theme park revenue picked up. Yield investors in Disney now have more choices for income than just Disney stock. Disney CEO Bob Chapek mentioned that the company has over 340 local original titles in various stages of development and production across its direct-to-consumer platforms, which would include Hulu and ESPN+. As of July 2022, the company operates two main business segments: Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP). I am not receiving compensation for it (other than from Seeking Alpha). We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. It's one of Pixar's only bombs. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. After breaking out from a flat base and rising to record highs in November 2019, Disney stock tumbled more than 40% during the coronavirus market crash. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. 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. That's in addition to streaming content and other products. 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. 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. The Walt Disney Company (DIS) Stock Historical Prices & Data - Yahoo Finance U.S. Markets closed S&P Futures +2.25(+0.06%) Dow Futures 32,830.00 +4.00(+0.01%) Nasdaq Futures 12,015.75. There are several factors weighing the stock down. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. 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. 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. Meantime, theme park revenue picked up. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 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 entertainment company, which will celebrate its centennial anniversary in 2023, is facing headwinds such as fourth-quarter earnings that fell short of analysts' expectations and a looming recession, which may lead toconsumers cutting down on non-essential spending such as entertainment costs. There's just so much to unpack when it comes to the world's largest (and perhaps most complex) entertainment company. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. The stock also remains down by almost 50% from highs seen in 2021. If it . Iger is getting his ducks in order in his third transformation. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Disney has also acquired several companies to reach wider audiences. View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. The fourth quarter was quiet for new releases, and as a result, subscriber growth slowed to 2.1 million subscriber additions. Disneys stock price steadily grew during these stock split periods finally going past $25 in 1997, there was slight tumultuous period over the next few years but Disneys stock price was most hit in the early part of the next decade. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. 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). Invest better with The Motley Fool. 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 Walt Disney Co. is a diversified international family entertainment and media enterprise. 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. And no, 2022 wasn't an exceptional year. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. 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. Disney aims to reduce its debt. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. That makes Disney one of the worst . It only grossed roughly $156 million through late June, below its $200 million budget. All rights reserved. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. 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. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. Disneys stock price has significantly risen since its IPO. (Author's comments in January 2023. Shares of Disney are down nearly 25% this year, making it one of the worst Dow stocks. The Motley Fool has a disclosure policy. Type a symbol or company name. These are planned for release over the next few years. The demographic difference in age is tremendous. While revenue rose 26% year-over-year to. In the last year, DIS' stock price corrected by -25.8%, and . Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: That's nearly 21% potential upside. Key price drivers. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. The 64 analysts offering price forecasts for Walt Disney. It also spent less in . That's right -- they think these 10 stocks are even better buys. which lost subscribers. 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. Walt Disney Co. reported Q1 profit that fell substantially short of analysts' expectations which sent the stock price to a 10% decline in after-hours trading. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. These numbers point toward Wall Street being in the claws of a . Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Discovery, which experienced stock declines of 51% and 62%, respectively, in 2022. It actually lost subscribers in the fourth quarter, and losses were still staggering. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? 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. 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. UPDATE: Disney stock values have continued to drop. 2000-2023 Investor's Business Daily, LLC. Disney is not short of growth opportunities heading into 2022. I have no business relationship with any company whose stock is mentioned in this article. Disney trades at $169.30 as of publishing, off the 52-week low of $79.07. I believe Hulu is a strategic fit and should not be sold. *Average returns of all recommendations since inception. And the gains are not over yet. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Discovery. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. The Motley Fool has a disclosure policy. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. However, whether Disney stock is a good buy will depend on your investing goals and portfolio composition. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. 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. account day-to-day movements in market value compared to a companys liability structure. 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. . We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. But Disney typically outperforms other media companies in ticket sales in any given year. Disneys stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. Making the world smarter, happier, and richer. Capital Com Online Investments Ltd is a limited liability company with company number 209236B. Considering that the company's latest quarter saw its entertainment and media segment report $10 million in operating losses after a costly investment in streaming content, the box office success should help Disney continue its current growth trajectory. Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! That's nearly 22% below the high set on Jan. 3.". Our current forecasts indicate Disney+ will hit profitability by the end of fiscal 2024 and achieving that remains our goal. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. Tim Allen-free "Lightyear" fails at the box office Last summer , Disney released "Lightyear," the newest film in the "Toy . 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. 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. 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. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. 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. The major market events for the week ahead right in your inbox. Get the latest Netflix news, plus stock quotes and analysis. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. A closer look at its segments reveals that revenue from Disney Media and Entertainment Distribution fell 3% year-over-year (YoY) to $12.72bn in the fourth quarter of2022 owing to widening losses for Direct-to-Consumer (DTC) and Content Sales/Licensing. The DMED segment encompasses the company's global film and episodic television content production and distribution activities. A second location in Orlando, Fla., was announced in 1965. Stock prices have fallen precipitously across sectors over recent months and we are now in a bear market for the first time since March 2020, when the Covid-19 outbreak triggered a market crash. 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