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. This will be Igers third transformation. 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. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. Still, considering the company's present measures as well as the past glory, the market is bullish about the stock and feels it might rally again in 2022.The Walt Disney Company, popularly. Type a symbol or company name. can generate Disneys stock price forecast beyond 2022. 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. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. (read more). DIS. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. Management said that range will now be higher, as they ramp up spending on local and regional content. The Walt Disney Company is a diversified international family entertainment and media enterprise. Disney has three years to double its subscribers, but that should be an easy layup given that Disney has gotten this far without having deeply tapped the rich content pipeline it unveiled a year ago. The list includes 21st Century Fox, Marvel Studios, Lucasfilm, Pixar and Blue Sky Studios. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. It is also a constituent of the S&P 500 index (US500). Some investors may adopt a wait-and-see approach. The site suggested the stock could reach $118.328 in three years, according to its Disney stock forecast for 2025. 2009 was a tough year for Disney and the market as a whole. Data source: IMDB. 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. its popular franchises like Marvel and Star Wars in the fourth quarter of 2022 on Disney Plus, according . Save over $170 and access 6 weeks of prograde stock research tools for only $49.95! Please. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. 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. 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. 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. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. Disney's content wins are slowing down, too. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. Consider Disney's 2022 film slate versus its competitors. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. If it . Direct-to-Consumers (DTC) operating loss jumped to $1.47bn in the fourth quarter of fiscal2021/2022, from $630m in the previous fiscal year. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). Disney stock rose 13.6% on Dec. 11 following the announcements at the investors conference. What if youre looking for a more balanced portfolio instead? *Stock Advisor returns as of February 8, 2023. The name was changed to The Walt Disney Studio at Roys suggestion. There are several factors weighing the stock down. It found a bottom on March 18, 2020, before making its way back to fresh highs. 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. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. That's nearly 21% potential upside. Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. Invest better with The Motley Fool. If Disney decides to reinstate its dividend, it may have a minimal impact on shareholder value. Authors may own the stocks they discuss. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. I have no business relationship with any company whose stock is mentioned in this article. NFLX Wait for the stock to rise above its 200 day moving average of 128.25 before getting too bullish. OK, Avatar: The Way of Water was an exceptional film, becoming the third highest-grossing film ever in a matter of weeks. 2000-2023 Investor's Business Daily, LLC. I wrote this article myself, and it expresses my own opinions. The number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. This news was received favorably by investors. Capital Com is an execution-only service provider. 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. Additionally, Disney recently announced that they will be introducing a new ad-supported subscription option for Disney+ in 2022. 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. It actually lost subscribers in the fourth quarter, and losses were still staggering. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Since my return, I have drilled down into every facet of the streaming business to determine how to achieve both profitability and growth.. However, the company's shares remain down 33% over the past 12 months. Some of the major properties licensed by the company include: Mickey and Minnie Mouse, Star Wars, Frozen, Disney Princess, Avengers, Spider-Man, Toy Story, Disney Classics, Winnie the Pooh and Cars. Disney Entertainment: entertainment media and content businesses globally, including streaming. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? The acquisition included Foxs renowned film production business Twentieth Century Fox, as well as Foxs interests in streaming service Hulu, which helped the company to compete with rival streaming titan Netflix. While Covid-19 restrictions have limited its themeparkoperations, Macker believed the segment will rebound after capacity restrictions are lifted, partly because families still view the parks as prime vacation destinations. 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. (Author's comments in January 2023. All rights reserved. However, this takeover is not expected to impact Disney's cash flow. So, we could see those Disney+ subscription numbers grow even more soon. The score provides a forward-looking, one-year measure of credit 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. We expect that Iger will unwind some of the major changes put in place by Chapek. Since IPO, Disney stock has been traded on the New York Stock Exchange under the ticker symbol DIS, it has been one of the 30 stocks in the Dow Jones industrial average since 1991. Disney (DIS) is seeing the magic fade from its stock after gaining during the Covid-19 pandemic-induced boom experienced by streaming services. 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. 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. The price, however, started to spike after 20 March 2019, following Disneys acquisition of 21st Century Fox. which lost subscribers. DMED covers global film and episodic television content production and distribution activities. The stock is trying to rally after underperforming since Covid struck and the company got into political hot water with Florida. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Disney stock is listed on the New York Stock Exchange (NYSE) under the ticker DIS. 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. So is Disney a buy? Disney Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. 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. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. That's in addition to streaming content and other products. Disney is currently faced with the question of whether these changes can be made before conditions change again, and how far should the changes go? However, using the stock price history, algorithm-based price prediction service Wallet Investor can generate Disneys stock price forecast beyond 2022. The firm expects to see 240M to 260M subs just for Disney Plus by. Yield investors in Disney now have more choices for income than just Disney stock. 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. However, investors were pleased with progress in slashing costs and narrowing streaming losses, even though they still came in. The stock hit an all-time high closing price of $201 on 8 March 2021, after California announced it would allow ballparks, stadia and theme parks to reopen for outdoor activities starting 1 April 2021. The history of the company started when brothers Walt and Roy founded the Disney Brothers Cartoon Studio on 16 October 1923, following Walts success in selling his first pilot cartoon film series,Alice Comedies. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. 3 Dates for Disney Stock Investors to Circle in March, Disney Can't Make a Multiplex Mountain Out of an Ant Hill, This Could Be a Reason Disney Stock Soars This Year, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, This State Has the Highest Real Estate Taxes (and It's Not Even Close), Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. 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. In a move worthy of an Oscar, Iger directed the acquisition of Marvel Studios in 2009 for $4 billion. Discovery. That's nearly 22% below the high set on Jan. 3.". The pandemic depleted its parks and box office revenue in 2020 and 2021. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. 2022 highest-grossing films by parent company. Stock Price Forecast. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. And don't forget to keep an eye on the market's action. Historical Disney stock price data showed that from July 2017 to March 2019, the stock value fluctuated between $98 and $116 a share. Walt Disney World opened in 1971, two months before Roy's death. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. According to the numbers, the earnings per share hit $1.06. Iger is getting his ducks in order in his third transformation. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. 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. * Average Estimates in Million (e.g. I am not receiving compensation for it (other than from Seeking Alpha). 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. Disney has been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. 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. 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. *Average returns of all recommendations since inception. And he has the headache with Florida to deal with. Localized content can drive worldwide subscriber growth. 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." Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. 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 Its expected to turn a profit in 2024. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. Discovery. The 26 analysts offering 12-month price forecasts for Walt Disney Co have a median target of 130.00, with a high estimate of 141.00 and a low estimate of 94.00. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. The California-based companys businesses include media networks, studio entertainment, interactive media, consumer products, theme parks and resorts. 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. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. 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. Privacy Policy & Terms of Use. The Disney stock price targets ranged from a low of $94 to the high of $185. 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. Revenue in the 2021/2022 fiscal year increased to $82.72bn, from $67.41bn in the same period in the previous fiscal year. Meantime, theme park revenue picked up. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. As noted earlier, fiscal '21 EPS rose. Jennifer Saibil has positions in Walt Disney. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. The following year, Walt passed away, leaving Roy in charge. After the August 10 close, Disney reported higher-than-expected fiscal Q3 earnings, as Disney+ streaming subscriptions came up strong. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. Why I rated Disney (NYSE:DIS) as a Sell in December 2022 is because of weak fundamentals, uncertainty surrounding the return of CEO Bob Iger, competition, and the highly variable financial performance of Disney, which is cyclical. Capital Com Online Investments Ltd is a limited liability company with company number 209236B. 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. Dividend). As of July 2022, the company operates two main business segments: Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP). . In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Disneys stock price has significantly risen since its IPO. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. However, whether Disney stock is a good buy will depend on your investing goals and portfolio composition. View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. It's been a wild ride on Wall Street since early 2020, as the stock market fell into a bear amid the coronavirus crash. The latter has expanded very successfully across international markets based on its focus on producing local language content. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. It's still recovering, but hit films are drawing in viewers. 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. And reopening movie theaters are boosting prospects for box-office sales. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. The creators know audiences love and wait for this content. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. Follow Matt Krantz on Twitter at @mattkrantz, View Breakout Stocks & Technical Analysis, Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest, Catch The Next Big Winning Stock With MarketSmith. However, as of 2/27/2023, there are other options for income, such as CDs yielding 4.5% to 5% and 10-year US Treasuries yielding 3.95%, with 1-year yielding 4.75%. 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. Media and . Discovery . Iger's success in his previous transformations makes it possible for him to succeed in his third transformation. A second location in Orlando, Fla., was announced in 1965. Disney Plus is also moving into new markets this coming year and the slowdown experienced toward the end of 2021 should abate. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. 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 services algorithm-driven forecasting system said the stock is an acceptable long-term investment. 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. Key Points. But it needs to find a balance between streaming and in-person revenue. Disney's . 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. The stock also remains down by almost 50% from highs seen in 2021. 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. 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. It earns the largest affiliate fees per subscriber of any cable channel and generates cash from advertisers looking to reach adult males aged 18 to 49, a critical demographic. of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Here are some of the many problems Disney has endured in 2022 and 2023. Per capita spending in Disneys parks has also soared by 40% in Q2, versus the same period in the pre-pandemic era, indicating that these assets could emerge stronger than pre-pandemic levels, generating sizable cashflows for Disney and potentially masking some of the impacts of rising content investments. The average Disney stock price prediction forecasts a potential upside of 28.69% from the current DIS share price of $101.68. Invest with Trefis Market Beating Portfolios. Create your Watchlist to save your favorite quotes on Nasdaq.com. That includes Pixar's "Luca," "Raya and the Last Dragon" and "Encanto." However, the CEO responsible for Disney's golden years, Bob Iger, is back at the helm and on a mission to make streaming profitable. Updated daily, it takes into Disneys valuation multiples are also reasonably compelling. See our analysis of Disney revenue for a closer look at the companys key revenue streams and how they have been trending. Theatrical releases, though, continue to struggle. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. Disney is releasing seven other films outside of the MCU in 2023. 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. Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. 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." You'll want to wait until the market is in a confirmed uptrend, which means investors can buy leading stocks at proper buy points. call +44 20 3097 8888 support@capital.com. In other words, the majority of Disney's theater content is almost no-brainer efforts. More freedom in that process should lead to content being provided in the right medium to make the most money. Wall Street analysts do not provide long-term Disney share price projections. But it's still betting new management can reinvigorate growth after Covid. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In 2020, Disney pleased its shareholders with around 25% stock return. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. Ticket sales are a central element in recovering costs for expensive content, and in sending the right films to theaters to add to profitability without cutting into streaming efforts. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. These fans then go on to further engage with the MCU through theater releases and content-based products. 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! The reopening of Walt Disney 's ( DIS -1.41%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+). IsDisney stockis a buy right now? The Disney stock price targets ranged from a high of $185and a low of $94. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. But now it's trying to find its footing. 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.