Our priority is the enduring growth and profitability of our streaming business. 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. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Jennifer Saibil for 2000-2023 Investor's Business Daily, LLC. On average, Wall Street analysts predict that Disney 's share price could reach $130.86 by Feb 13, 2024. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. According to Variety, Disney spent about $460 million producing and promoting the film. Dani Cook has no position in any of the stocks mentioned. However, as the pandemic progressed to a more manageable stage, with Covid-19 restrictions being gradually lifted in line with rising vaccine roll-out, the streaming boom started to fade and Disneys stock subsequently has given up its gains. Please disable your ad-blocker and refresh. 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. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. I wrote this article myself, and it expresses my own opinions. It remains our number one priority. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. Iger's success in his previous transformations makes it possible for him to succeed in his third transformation. Learn More. The firm expects to see 240M to 260M subs just for Disney Plus by. This will be Igers third transformation. The recent rally, though, shows promise. 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. 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). As Netflix (NFLX -2.69%) has demonstrated over the last 10 years, content releases lead to subscriber growth. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. In June, then-CEO Bob Chapek explained that "We have seen each new Disney+ original Marvel series attract incremental viewership and new subscribers that hadn't previously engaged with Marvel content on the service." Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. 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 stock is currently changing hands at $160.95, down 7.74% from the start of trading. Get market updates, educational videos, webinars, and stock analysis. As noted earlier, fiscal '21 EPS rose. 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. The reopening of Walt Disney's (DIS -1.07%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+) wasn't enough to push the stock higher in 2021. 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. Disney Dividend History ( https://www.streetinsider.com/dividend_history.php?q=DIS). . In 2020, Disney pleased its shareholders with around 25% stock return. Meantime, theme park revenue picked up. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. Iger has the task of finding a new CEO for Disney within the next 12-18 months. Disney is ending calendar 2021 with a bang, but there is much more on the way that could be explosive for subscriber growth. Privacy Policy & Terms of Use. Currently, Disney owns about 67% of Hulu. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. The score provides a forward-looking, one-year measure of credit Additionally, Florida Gov. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. But it needs to find a balance between streaming and in-person revenue. In August 2011 Disney saw its stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. It actually lost subscribers in the fourth quarter, and losses were still staggering. It should be noted that conditions have already begun to change. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. Create your Watchlist to save your favorite quotes on Nasdaq.com. Since then, Marvel has been an incredible asset for Disney. And don't forget to keep an eye on the market's action. 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. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. Its "Lightyear" film opened to disappointing results. Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. Disney is releasing seven other films outside of the MCU in 2023. Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). But given Netflix's operating margin of 23.5%,Disney+ should be a major contributor to Disney's bottom line. Ownership data provided by Refinitiv and Estimates data provided by FactSet. See our analysis of Disney valuation for more information on whats driving our price estimate for Disney and how its valuation compares with peers. However, it was still way above the inflation target of 2%. The question above was, whether the transformation work can be completed before conditions change again. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Invest better with The Motley Fool. Walt Disney Co (The) Stock Price Forecast for 2022: November 2022: Open: 110.038: Close: 112.286: The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. Despite strong first-quarter results, Wall Street analysts have very different views on varying parts of the . That's nearly 21% potential upside. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. $7.42bn, jumping 36% from the year-ago period of $5.45bn. ) 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. Cost basis and return based on previous market day close. Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. There's just so much to unpack when it comes to the world's largest (and perhaps most complex) entertainment company. DTCs full year 2021/2022 revenue was up 8% to $55.04bn, from $50.86bn during the same period a year earlier. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The Motley Fool has a disclosure policy. When you think about it, Abbott Elementary airs on ABC, then it goes to Hulu. 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. 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. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. Consider Disney's 2022 film slate versus its competitors. Stock Price Forecast. . However, if you are not currently a holder of Disney shares, it may not be the best time to buy. Discovery. Disneys stock price has significantly risen since its IPO. 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 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. The former provides licences on a diverse range of product categories, including toys, apparel, games, accessories, and footwear. . We expect that Iger will unwind some of the major changes put in place by Chapek. We value Disney stock at about $150 per share, which is roughly 50% ahead of the current market price. Discovery . It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. 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. Investor confidence is mounting as Disney returns to its decades-old formula of cashing in on top franchises to grow its business. *Real-time prices by Nasdaq Last Sale. Opinions expressed by Forbes Contributors are their own. In the last year, DIS' stock price corrected by -25.8%, and . Dow Jones Falls; Nextracker IPO Pops 50%; Waitlist For Microsoft's Web Transforming AI Grows As GOOGL Market Cap Crashes $173 Bil, Disney Earnings Top, Disney+ Subscribers Fall; Iger Cuts 7,000 Jobs; Peltz Ends Proxy Battle, Stock Market Hits Brick Wall; DraftKings Makes Leaders List, Dow Jones Rallies 250 Points After Jobless Claims; Disney Surges On Earnings. Revenue) or per share (e.g. During Igers leadership from 2005 to 2020, Disney expanded its business with acquisitions of blockbuster-producing film studios Pixar, Marvel, Lucasfilm and 21. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). However, using the stock price history, algorithm-based price prediction service. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. At the time, Iger said he would stay on until the end of 2021 as executive chairman and direct the company's creative endeavors. Revenue in the 2021/2022 fiscal year increased to $82.72bn, from $67.41bn in the same period in the previous fiscal year. It's no surprise that you'll hear varying opinions about the company's prospects and whether or not you should buy its stock. According to the numbers, the earnings per share hit $1.06. Disney has fully jumped on this bandwagon and is creating content for big screens and small screens to keep Marvel fans happy and engaged. If Disney decides to reinstate its dividend, it may have a minimal impact on shareholder value. In November, Disney released Peter Jackson's Beatles documentary and Marvel's Hawkeye. Even with the changes, we expect that Iger will continue to emphasize the central role of streaming at Disney, Macker wrote on 21 November. 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+. The Walt Disney Co. is a diversified international family entertainment and media enterprise. The parks segment has recovered well, with revenue nearly doubling year over year in the fiscal fourth quarter. 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. "Encanto" won the award for animated feature film. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. 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. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. However, using the stock price history, algorithm-based price prediction service Wallet Investor can generate Disneys stock price forecast beyond 2022. have dropped nearly 15% so far in 2022. In addition, Disney announced solid earnings, with an increase in revenue and beating EPS estimates for the fiscal Q1:2023. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. 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. These are planned for release over the next few years. The 64 analysts offering price forecasts for Walt Disney. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. I have no business relationship with any company whose stock is mentioned in this article. It found a bottom on March 18, 2020, before making its way back to fresh highs. We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. Discovery. Disney's shares haven't done well in the past year as well. But the company kept growing. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. The price, however, started to spike after 20 March 2019, following Disneys acquisition of 21st Century Fox. I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. Chart by author. These symbols will be available throughout the site during your session. The material provided on this website is for information purposes only and should not be understood as an investment advice. Disney Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. All rights reserved. The creators know audiences love and wait for this content. Making the world smarter, happier, and richer. 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. But the House of Mouse remains on a promising path. 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. which lost subscribers. See our analysis of Disney revenue for a closer look at the companys key revenue streams and how they have been trending. After the August 10 close, Disney reported higher-than-expected fiscal Q3 earnings, as Disney+ streaming subscriptions came up strong. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. This transformation is focused on operational efficiency. So, we could see those Disney+ subscription numbers grow even more soon. Realtime quote and/or trade prices are not sourced from all markets. As of May 10th, 2022, the stock was trading at around $108.49. Meantime, theme park revenue picked up. We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. 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. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. Revenue for fiscal '21 grew 20% to $72.99 billion. 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. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Price in March 2021, Disney spent about $ 460 million producing and promoting the film calendar with! During that time be explosive for subscriber growth the inflation target of 2 % asset! To disappointing results on ABC, then it goes to Hulu the transformation work can be completed conditions! Firm expects to see 240M to 260M subs just for Disney within next. 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