Furthermore, Disney paid $900m for Major League Baseballs remaining 15% stake in the streaming company BAMTech (MLB), according to a SEC filing on 30 November. The reopening of economies and activities around the world has slowed demand for streaming services, as employees and children have either fully or partially returned to offices and schools. Disney stock predictions: Can Iger bring back Disneys magic? 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. The DPEP segment includes significant lines of business like parks and experiences and consumer products. CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. Meantime, theme park revenue picked up. The long-term . It only grossed roughly $156 million through late June, below its $200 million budget. Is this happening to you frequently? That makes Disney one of the worst . So, we could see those Disney+ subscription numbers grow even more soon. -2.08%. Despite strong first-quarter results, Wall Street analysts have very different views on varying parts of the . In the sites Disney stock forecast for 2023, losed Joint Stock Company FinTech Solutions, Disney stock analysis and historical performance, What happened to Disney stock? 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. View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. 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. But it's still betting new management can reinvigorate growth after Covid. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. Analysts now expect EPS to jump 66% for the fiscal year ending in September 2022, followed by a 39% jump in fiscal '23, according to S&P Global Market Intelligence. Consumer Products operations consist of licensing and retail. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. Disney's content wins are slowing down, too. 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. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. The streaming industry, in general, has been facing headwinds as people consume less content online as the economy opens up post-Covid. We are not in any way stepping away from streaming. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. As of July 2022, the company operates two main business segments: Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP). Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. 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. 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. balance sheet and inputs from the stock market. We expect that Iger will unwind some of the major changes put in place by Chapek. Disney Plus is also moving into new markets this coming year and the slowdown experienced toward the end of 2021 should abate. Localized content can drive worldwide subscriber growth. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. Morningstars senior equity analyst Neil Macker stated that while Iger may not be as focused on the parks segment as Chapek, Iger has stronger and longer ties with Hollywood as well as investors. 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). (read more). It booked earnings per share (EPS) of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Disney Parks, Experiences, and Products: theme parks, resort destinations, and cruise line, Disney's consumer products, games, and publishing businesses. 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. What is DIS's Earnings Per Share (EPS) forecast for 2023-2025? In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. The question above was, whether the transformation work can be completed before conditions change again. . Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. Disneys stock price has significantly risen since its IPO. 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. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. 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. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. Source: FactSet. The information and content are subject to change without notice. Disney has undergone a challenging few years, to say the least. In a move worthy of an Oscar, Iger directed the acquisition of Marvel Studios in 2009 for $4 billion. 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. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. 2022 highest-grossing films by parent company. Here's why the stock should bounce back in 2022. Authors may own the stocks they discuss. According to Variety, Disney spent about $460 million producing and promoting the film. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis, Market Crashes Compared.'. Wall Street analysts do not provide long-term Disney share price projections. That's right -- they think these 10 stocks are even better buys. In the fourth quarter of 2022, Parks & Experiences booked revenue of. A 66 Earnings Per Share Rating reflects a three-year earnings growth rate of -35%, which includes a 19% decline in fiscal '19 and a 65% drop in fiscal '20. Discovery . 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 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. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. Disney's . Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. Shares of the entertainment giant slid over 40% in 2022. The name was changed to The Walt Disney Studio at Roys suggestion. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. At the time, Iger said he would stay on until the end of 2021 as executive chairman and direct the company's creative endeavors. 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. I have no business relationship with any company whose stock is mentioned in this article. The Marvel Cinematic Universe (MCU) has grossed more than twice the amount of the next-highest franchise, Star Wars -- also owned by Disney. 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. Privacy Policy & Terms of Use. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. The sequel to 2009's Avatar became the third highest-grossing movie of all time in February, overtaking 1997's Titanic and earning $2.24 billion globally so far. That's nearly 22% below the high set on Jan. 3.". 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 64 analysts offering price forecasts for Walt Disney. DPEPs operations has two main business lines: Parks & Experiences and Consumer Products. Discovery. But Disney typically outperforms other media companies in ticket sales in any given year. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. 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. However, this takeover is not expected to impact Disney's cash flow. Over Q2 FY22, Disneys Parks, Experiences, and Products segments results came in ahead of expectations at $6.7 billion, marking an increase of 110% year-over-year, despite this being a seasonably weak quarter which also saw a surge in omicron-related Covid cases. Its clear that some of our pricing initiatives were alienating to consumers. 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. But now it's trying to find its footing. movie and theme park attendance and ratings for Disney-owned ABC and ESPN is up for debate. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. financial performance of Disney, which is cyclical. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. 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. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. The creators know audiences love and wait for this content. It remains our number one priority. Let's assess. It actually lost subscribers in the fourth quarter, and losses were still staggering. Image source: Walt Disney. Park & Experiences operates all Disneys resorts, hotels, Disneyland parks, a four-ship vacation Disneyland Cruise Line, and other entertainment facilities. Discovery. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. Disney Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. 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. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. 2009 was a tough year for Disney and the market as a whole. That's nearly 21% potential upside. Management said that range will now be higher, as they ramp up spending on local and regional content. Build a CFD portfolio with your favourite companies. But the company kept growing. Do Not Sell My Personal Information (CA Residents Only). 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. 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. And as you can see below, BABA beat on both top . However, using the stock price history, algorithm-based price prediction service. The Motley Fool->. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. 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. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. But the market is making the mistake of extrapolating one quarter's growth way out into the future. If you rely on the information on this page then you do so entirely on your own risk. Heading into FQ3 2023 (December 2022) earnings report, Alibaba was expected to post revenues and Normalized EPS of $35.79B and $2.40, respectively. Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). While the Covid-19 pandemic hit Disney with theme park closures and cancelled shows, the strong performance of its streaming services supported the companys performance. NFLX Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. Disney (DIS) is seeing the magic fade from its stock after gaining during the Covid-19 pandemic-induced boom experienced by streaming services. But its parks and experiences segment is struggling, and the balance sheet has a lot of debt. The CEO said his plan to cut costs by $5.5 billion will allow the company to start with a "modest" dividend and increase it over time. But the big one was released on Dec. 29, a new Star Wars original series called The Book of Boba Fett. ). Ownership data provided by Refinitiv and Estimates data provided by FactSet. * Average Estimates in Million (e.g. 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. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. DIS is relatively overvalued on two common measures compared to its competitors. I have no business relationship with any company whose stock is mentioned in this article. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Disney may also be engaging with other investors, whether activists or others, and the management appears to have received the message that a strategy for turnaround and sustainability was necessary. 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. The China Trade: Demand Boom or Inflationary Bust? The return of a dividend is a positive sign as it illustrates the company's financial confidence. Disney was hit by residual pandemic headwinds and a tough economy. These fans then go on to further engage with the MCU through theater releases and content-based products. Despite the recent concerns in the streaming industry, we think Disney stock looks like a buy for a couple of reasons. 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! Its expected to turn a profit in 2024. Get the latest Netflix news, plus stock quotes and analysis. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. Disney is facing mounting pressure from its streaming business. If you have an ad-blocker enabled you may be blocked from proceeding. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! 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