Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. Is it profitable to invest in Walt Disney Co (The) stock? In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. On the retail operation, the company sells Disney, Marvel, Pixar and Lucasfilm-branded products through retail stores and internet sites globally. Learn More. Some of the highlights are new CEOs, old CEOs, complete stops to some of its businesses, skyrocketing streaming, huge losses, and fabulous rebounds. 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. Its "Lightyear" film opened to disappointing results. Disney reported a stronger than expected set of Q3 2022 results on Wednesday, sending the stock up by about 8% in pre-market trading on Thursday. which lost subscribers. As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. To make the world smarter, happier, and richer. NFLX There's just so much to unpack when it comes to the world's largest (and perhaps most complex) entertainment company. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. Wall Street analysts do not provide long-term Disney share price projections. Read on to find out. The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. call +44 20 3097 8888 support@capital.com. The day before, on February 8, 2022, he had said: When you think about it, Abbott Elementary airs on ABC, then it goes to Hulu. The Walt Disney Co. 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 stock is now more than 35% off its 52-week high, according to IBD MarketSmith chart analysis. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. Image source: Walt Disney. 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 got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. on Q1:2023 conference call on 2/8/2023. Historically, Disney's dividend yield ranged from 0.6% to 1.6% between 2011 to 2019. 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. Moodys Daily Credit Risk Score is a 1-10 score of a companys credit risk, based on an analysis of the firms DIS is relatively overvalued on two common measures compared to its competitors. The information and content are subject to change without notice. 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. In November, Disney released Peter Jackson's Beatles documentary and Marvel's Hawkeye. The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. 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. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. Finally, Disney made a decision to work on its pricing strategy. Disney's revenue sources are divided into two streams. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. That includes Pixar's "Luca," "Raya and the Last Dragon" and "Encanto." 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. Iger has already answered the second question by tweaking the internal structure and organizing Disney into three core business segments as follows: Iger has no plans to sell ESPN and should not sell Hulu. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. 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. We. The fourth quarter was quiet for new releases, and as a result, subscriber growth slowed to 2.1 million subscriber additions. However, if you're looking for a stock to hold for many years, Disney is an excellent option after a sell-off. Author's Comment in January 2023. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. To make the world smarter, happier, and richer. The Motley Fool->. 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%. *Average returns of all recommendations since inception. Analysts can be wrong and theirDisney share price forecasts shouldnt be used as a substitute for your own research. It should be noted that conditions have already begun to change. That's nearly 22% below the high set on Jan. 3.". The 90s brought two more stock splits, one 4 for 1 in 1992 and then a 3 for 1 stock split in the summer of 1998. Direct-to-Consumers (DTC) operating loss jumped to $1.47bn in the fourth quarter of fiscal2021/2022, from $630m in the previous fiscal year. Disneys stock price gained 31.9% during 2019, compared to around a 2% increase in 2018. Netflix (NFLX) also reported slowing revenue growth in the third quarter of 2022, ending September with year-on-year revenue growth of 5.9% compared to 16.3% in the same period of 2021. Theatrical releases, though, continue to struggle. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. Disney stock predictions: Can Iger bring back Disneys magic? As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. Disney is not short of growth opportunities heading into 2022. Currently, Disney owns about 67% of Hulu. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Throughout its near century-long history, Disney has grown into a multi-billion-dollar business, famous for its flagship family-oriented brands. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. Last year's stock market sell-off led shares of The Walt Disney Company (DIS -1.07%) to plunge 44% over 12 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 Disney's bottom line. The long-term . 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. Since reaching an all-time high closing price in March 2021. I wrote this article myself, and it expresses my own opinions. The number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. It is in many respects, our future. The Walt Disney Company is a diversified international family entertainment and media enterprise. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. movie and theme park attendance and ratings for Disney-owned ABC and ESPN is up for debate. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? And the gains are not over yet. The firm expects to see 240M to 260M subs just for Disney Plus by. The management's decision to use cash flow to pay dividends instead of paying debts will signal that its capitalization is near optimum. Do Not Sell My Personal Information (CA Residents Only). Media and . In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Learn all the ways IBDs top investing tools can help you succeed in the market! Studios, General Entertainment and Sports create the content. 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? Disney stock is listed on the New York Stock Exchange (NYSE) under the ticker DIS. Consider Disney's 2022 film slate versus its competitors. 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. 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. Here are some of the many problems Disney has endured in 2022 and 2023. 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. The recent rally, though, shows promise. Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. And so we are going to monitor it very carefully. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis, Market Crashes Compared.'. I have always believed by the way, that accessibility is a core value of the Disney brand. Marvel's first 2023 release, Ant-Man and the Wasp: Quantumania, opened last weekend with $104 million in opening weekend sales, exceeding expectations and becoming the third-highest February opening ever. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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