Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. Google The last time the stock was close to that value was around June of 2020, at which point the stock was trading at $109.10. It's no surprise that you'll hear varying opinions about the company's prospects and whether or not you should buy its stock. Opinions expressed by Forbes Contributors are their own. 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. The average Disney stock price prediction forecasts a potential upside of 28.69% from the current DIS share price of $101.68. We take a look at recentnews, the stocks price history and the latest Disney stock forecast. 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. Activist investors continue to play a cooperative role. DIS stock closed at $100.45 on 2/27/2023 on the day of writing. 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. Get the latest Netflix news, plus stock quotes and analysis. The reopening of Walt Disney 's ( DIS -1.41%) theme parks and growth from its three streaming services (Disney+, Hulu, ESPN+). Walt Disney's (DIS) theme parks are bustling again following a long slow period during the pandemic. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. The stock price is currently down 14.5% year to date, trailing the 27% return of the S&P 500 index. We are not in any way stepping away from streaming. Shares of the entertainment giant slid over 40% in 2022. 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. Its "Lightyear" film opened to disappointing results. Disney has been on a downward trajectory since the beginning of 2022, despite starting strong at $157.83 on 3 January. 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. The pandemic depleted its parks and box office revenue in 2020 and 2021. 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. We expect the unique content on ESPN and Disney Channel will provide the firm with a softer landing than its peers as viewing transfers to an over-the-top world over the next decade, Macker added.. Disneys theme parks and resorts are almost impossible to replicate, especially considering the tie-ins with its franchises and other business lines, he said. There are 1.82 billion Disney shares outstanding, which places the stocks total value at $174.30bn as of 30 November 2022, according to Companiesmarketcap. As of May 10th, 2022, the stock was trading at around $108.49. It's worth watching, though, to see how the media giant fares now that its theme parks, cruises and movie theaters are back in action. So is Disney a buy? Revenue for fiscal '21 grew 20% to $72.99 billion. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. Shareholders seemed most excited about the new streaming forecasts, as the company now expects to reach . The list includes 21st Century Fox, Marvel Studios, Lucasfilm, Pixar and Blue Sky Studios. 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! Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. 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. In the sites Disney stock forecast for 2023, Wallet Investor projected the stock to trade at $108.72 in December 2023. Wall Street analysts do not provide long-term Disney share price projections. on Q1:2023 conference call on 2/8/2023. Walt Disney Co. stock falls Friday, underperforms market Feb. 24, 2023 at 4:49 p.m. The Motley Fool has a disclosure policy. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. It's still recovering, but hit films are drawing in viewers. Key Points. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. Disneys valuation multiples are also reasonably compelling. Under Iger's 14-year-plus tenure, Disney stock soared more than 400%, or about 12% annualized. 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 Disneys bottom line. I believe Hulu is a strategic fit and should not be sold. 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. If you rely on the information on this page then you do so entirely on your own risk. Last year Disney films won 23 Oscar nominations. -2.08%. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. But losses in the streaming business continue to hurt the business. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. Realtime quote and/or trade prices are not sourced from all markets. CEO Bob Chapek, former chairman of Disney Parks, Experiences and Products, was named new chief executive after Bob Iger stepped down in February 2020. Box N-4865, Nassau, Bahamas. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. 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. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. 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. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. Disney's revenue sources are divided into two streams. Disney is not short of growth opportunities heading into 2022. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. 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 will be Igers third transformation. Do Not Sell My Personal Information (CA Residents Only). 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. The DIS stock price can go up from 99.500 USD to 124.869 USD in one year. Updated daily, it takes into 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, it was still way above the inflation target of 2%. 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. As of July 2022, the company operates two main business segments: Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP). Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: 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." Discovery . Shares of the media giant surged 8% in the first four days of trading in 2023 . 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, Disney World to Loosen Reservation Regulations, 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), Disney still has a mountain to climb to get its flagship, 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. Consider Disney's 2022 film slate versus its competitors. Consequently, it's best not to invest in Disney solely for the potential of a dividend, as there's no confirmed date of its return, and it will be marginal when it is back. 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. Copy and paste multiple symbols separated by spaces. But given Netflix's operating margin of 23.5%,Disney+ should be a major contributor to Disney's bottom line. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. Disney was also given the authority, which it never exercised, to build a nuclear power plant and an . (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). Like clockwork, the stock slid. Macker also expected Disneys animated franchises across multiple platforms from movies, home videos, to musicals to continue to grow as more popular movies get released by the animated studio and Pixar. Key Points. 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. Iger's success in his previous transformations makes it possible for him to succeed in his third transformation. Disney was hit by residual pandemic headwinds and a tough economy. And reopening movie theaters are boosting prospects for box-office sales. It only grossed roughly $156 million through late June, below its $200 million budget. On this note, Disney is nearly doubling the amount of original content from its top brands in fiscal 2022. The long-term . 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. Some of the highlights are new CEOs, old CEOs, complete stops to some of its businesses, skyrocketing streaming, huge losses, and fabulous rebounds. Stronger revenue from Disneys Parks & Experiences segment helped to cushion losses from the DTC. And as you can see below, BABA beat on both top . The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. Previously the Walt Disney Co. issued its first stock through 6% cumulative preferred shares in 1940 where it was traded OTC (Over The Counter). It actually lost subscribers in the fourth quarter, and losses were still staggering. Create your Watchlist to save your favorite quotes on Nasdaq.com. 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 has fully jumped on this bandwagon and is creating content for big screens and small screens to keep Marvel fans happy and engaged. This news was received favorably by investors. This level of yield is unlikely to attract a significant number of new income investors, and therefore may not increase the shareholder base and value significantly. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. 2023 Capital Com Online Investments Ltd. Disney stock has been publicly traded since 1957 when it had its initial public offering where Disney stock was sold at $13.88 per share. Disney is releasing seven other films outside of the MCU in 2023. Moodys Daily Credit Risk Score is a 1-10 score of a companys credit risk, based on an analysis of the firms Overwhelmingly, 65.4% of Benzinga traders and investors said Disney would indeed reach $250 per share by 2022. The relative strength line, which compares a stock's performance to the S&P 500, keeps heading sharply lower and hasn't found a solid bottom. Learn all the ways IBDs top investing tools can help you succeed in the market! The latter has expanded very successfully across international markets based on its focus on producing local language content. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. 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. To make the world smarter, happier, and richer. 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. And the gains are not over yet. Key price drivers. 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." But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Disney has grown its revenue and operating income steadily since 2020 despite various headwinds. Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. The Walt Disney Co. is a diversified international family entertainment and media enterprise. 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. 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. In addition, rising US inflation started to bite into household spending around the time when streaming services, including Netflix, raised their subscription fees. The stock trades at about 27x consensus 2022 earnings and a little over 20x ZRX 2023 earnings. 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. Please. Investors probably shouldnt worry too much about the rising investments Disney is making into its content and streaming operations. The stock is trying to rally after underperforming since Covid struck and the company got into political hot water with Florida. That's in addition to streaming content and other products. Management said that range will now be higher, as they ramp up spending on local and regional content. Cost basis and return based on previous market day close. The company reports fiscal fourth-quarter results in November. Iger's biggest strength lies in his experience, and both Disney staff and investors believe in him. The Walt Disney Company at the 2022 Bank of America Securities Media, Communications & Entertainment Conference August 10, 2022 Disney's Q3 FY22 Earnings Results Webcast May 18, 2022 The Walt Disney Company at the 9th Annual MoffettNathanson Media and Communications Summit View All Investor Relations News February 9, 2023 This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. These fans then go on to further engage with the MCU through theater releases and content-based products. It had been sinking in the year since, but most recently moved below its 50-day moving average. Iger also told investors that it has new sequels in the works for Frozen, Toy Story, and Zootopia. Yield investors in Disney now have more choices for income than just Disney stock. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount , Universal , and Warner Bros. 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. 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. Highlights along the way included Disney's first sound film, "Steamboat Willie," in 1928, its first feature-length animated film, "Snow white and the Seven Dwarfs" in 1937, and a foray into television in 1950. Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. Making the world smarter, happier, and richer. 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." Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. 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. Wall Street analysts do not provide long-term Disney share price projections. *Average returns of all recommendations since inception. 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. 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. Here it stacks up against any other studio that had a top-10 film in 2022, which includes Paramount, Universal, and Warner Bros. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. Disney Parks, Experiences and . Marvel Studios and Lucasfilm have continuously produced some of the worlds highest-grossing movies through franchises such as the Marvel Cinematic Universe and Star Wars series. 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+. Revenue) or per share (e.g. As a result, Disney has a lot of work ahead to return to its pre-pandemic form. This measure against the company poses a political risk, as it may waste management's time and resources. Author's Comment in January 2023. Disney's . Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. * Average Estimates in Million (e.g. That leads to why I think Disney has a strong shot at a great year. These are planned for release over the next few years. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. 3/01/2023 The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. The Walt Disney company reported 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 8 November. During the earnings conference call, Iger implied that he would not sell Hulu. Iger is getting his ducks in order in his third transformation. On the other hand, the companys themeparkand film-making businesses have resumed with the lifting of Covid-19 restrictions. However, Disneys CFO Christine McCarthy said Disney+ Core subscribers were expected to only increase slightly in Q1 2022/2023 before accelerating in the next quarter. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. 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. The parks segment has recovered well, with revenue nearly doubling year over year in the fiscal fourth quarter. Disney Channels programming is made up of internally developed hits based on Disneys extensive library of feature films and animated characters. 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. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? I have no business relationship with any company whose stock is mentioned in this article. 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. According to data compiled by MarketBeat as of 1December2022, the consensus average analyst price target for the coming 12-month periodwas $132.07. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. Guidance still points to the service reaching profitability by fiscal 2024. That's nearly 21% potential upside. Disney is not a buy right now. 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. Disney Relative Valuation (Yahoo Finance: Disney Relative Valuation 2/27/2023). 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. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. 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. Moves like prioritizing quality over quantity by retaining members with a few select shows could go a long way in improving profit margins. We value Disney stock at about $150 per share, which is roughly 50% ahead of the current market price. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. Here are some of the many problems Disney has endured in 2022 and 2023. But Disney typically outperforms other media companies in ticket sales in any given year. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. Formerly with Fidelity Investments, Dean Witter Investment Management, Citibank - Amsterdam, Eli Lilly - Brussels, Thomson Financial (aka Thomson Reuters), NYC gov., and Apple, Inc. Graduate of Baruch College CUNY, NYU College of Arts and Sciences, and Erasmus University (Rotterdam School of Management) in that order. John Ballard owns Netflix and Walt Disney. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. However, using the stock price history, algorithm-based price prediction service Wallet Investor can generate Disneys stock price forecast beyond 2022. On the business side, Morningstars maintained its view that the firms direct-to-consumers products, such as Disney+, Hotstar, Hulu, and ESPN+ are set to be the drivers of its long-term growth. And no, 2022 wasn't an exceptional year. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. Find real-time DIS - Walt Disney Co stock quotes, company profile, news and forecasts from CNN Business. Stock Price Forecast. Meanwhile, a return to parks and box office ticket sales will keep the company growing until then. 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. Walt Disney World opened in 1971, two months before Roy's death. And that compounds the problem of real-world inflation for Disney, which said it spent $3.6 billion on capital expenditures in the past fiscal year and will increase that by $2.5 billion in 2022 .