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. And the gains are not over yet. You should do your own research about the stock by reading the latest DIS stock news, technical and fundamental analysis. However, Disney's stock rallied to a high of $118.18 on 2/9/2022 and closed the day at $110.36. 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. And don't forget to keep an eye on the market's action. 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. I have no business relationship with any company whose stock is mentioned in this article. Read The Big Picture for detailed daily analysis of what's going on in the stock market. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. 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? 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. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. The material provided on this website is for information purposes only and should not be understood as an investment advice. However, if you are not currently a holder of Disney shares, it may not be the best time to buy. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. So far, the movie theater industry hasn't met an untimely demise, as many predicted. And he has the headache with Florida to deal with. 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. Disney is much more than Marvel. 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%. But given Netflix's operating margin of 23.5%,Disney+ should be a major contributor to Disney's bottom line. Throughout its near century-long history, Disney has grown into a multi-billion-dollar business, famous for its flagship family-oriented brands. Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. *The average price target includes all analyst analysis, not just the most recent analysis presented in the chart. This move may impact Disney's streaming service, and it remains to be seen how it will affect subscriber acquisition and retention. It had been sinking in the year since, but most recently moved below its 50-day moving average. BREAKING: Salesforce Soars Late, Tesla Doesn't Unveil New EV. 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. The stock currently trades at just over 20 times Disney's peak earnings in fiscal 2018. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. 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. However, investors were pleased with progress in slashing costs and narrowing streaming losses, even though they still came in. Tim Allen-free "Lightyear" fails at the box office Last summer , Disney released "Lightyear," the newest film in the "Toy . Realtime quote and/or trade prices are not sourced from all markets. If it . 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. Park & Experiences operates all Disneys resorts, hotels, Disneyland parks, a four-ship vacation Disneyland Cruise Line, and other entertainment facilities. 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. 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. The company reports fiscal fourth-quarter results in November. Since the corporate strategy is to continue focusing on streaming for sustainable profitability, Hulu is a valuable asset that supports this strategy. Another activist investor, Dan Loeb, advised Disney, took a stake in the company, and pushed for change during the second half of 2022. These symbols will be available throughout the site during your session. Some investors may adopt a wait-and-see approach. It booked earnings per share (EPS) of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Moodys Daily Credit Risk Score is a 1-10 score of a companys credit risk, based on an analysis of the firms Walt Disney World opened in 1971, two months before Roy's death. (read more). Type a symbol or company name. Dividend). Invest with Trefis Market Beating Portfolios. 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. 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. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. However, the company's shares remain down 33% over the past 12 months. This overvaluation may be due to investors' confidence that growth will increase following Iger's restructuring efforts. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. That includes Pixar's "Luca," "Raya and the Last Dragon" and "Encanto." Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. Disney still has a mountain to climb to get its flagship streaming service, Disney+, to profitability, especially after taking a step back in its latest quarter by losing 2.4 million subscribers. The median . 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. In the past, Peltz's involvement has led to positive changes in the companies he has worked with. have dropped nearly 15% so far in 2022. While the decline was substantial, the entertainment company actually fared better than its biggest competitors, Netflix and Warner Bros. Additionally, Disney recently announced that they will be introducing a new ad-supported subscription option for Disney+ in 2022. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. Finally, Disney made a decision to work on its pricing strategy. 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. That legislation gave Disney taxing power over the 25,000 acres it had bought up so it could build roads, power plants, and water and sewage systems, using money it collected from itself through property taxes within the district boundaries. In the surprise boardroom shuffle, Iger will serve as Disneys CEO for two years. That's right -- they think these 10 stocks are even better buys. Disney's previous guidance for spending on content production was between $8 billion to $9 billion by fiscal 2024. 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. Turning Red Preview Beyond Disney+, continued financial success in the Disney Parks could also be a big boost to stock. Walt Disney Co (The) Stock Price Forecast for 2022: November 2022: Open: 110.038: Close: 112.286: 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 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. In addition, Disney announced solid earnings, with an increase in revenue and beating EPS estimates for the fiscal Q1:2023. It's fine-tuning this formula for the streaming era, and the 10 films coming to theaters this year may make 2023 a blockbuster year for Disney. Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. The Motley Fool has a disclosure policy. The earnings number also surpassed the . The media giant ranks 14th in the 20-stock Media-Diversified group, based on that rating. Media and . It remains our number one priority. Learn More. Florida is home to Disney's largest theme park complex. The price, however, started to spike after 20 March 2019, following Disneys acquisition of 21st Century Fox. 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. However, whether Disney stock is a good buy will depend on your investing goals and portfolio composition. The latest Disney stock news that moved the Disney stock price today came from its diluted first-quarter earnings report for 2022. That leads to why I think Disney has a strong shot at a great year. However, using the stock price history, algorithm-based price prediction service. Please disable your ad-blocker and refresh. In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Streaming will benefit from the new content being created at Disney and Fox television and film studios as well as the deep libraries at the studios. 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." We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. At the time, the company said the move would conserve about $1.6 billion in cash based on the $0.88 a share it last paid. Since reaching an all-time high closing price in March 2021. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. Of course, analysts are measuring the company's performance against management's guidance that Disney+ will reach between 230 million to 260 million subscriptions by fiscal 2024. Last year Disney films won 23 Oscar nominations. DIS is relatively overvalued on two common measures compared to its competitors. *Average returns of all recommendations since inception. I wrote this article myself, and it expresses my own opinions. Cost basis and return based on previous market day close. Last year's stock market sell-off led shares of The Walt Disney Company ( DIS 0.15%) to plunge 44% . The China Trade: Demand Boom or Inflationary Bust? The Disney stock price targets ranged from a high of $185and a low of $94. Never invest or trade money that you cannot afford to lose. We were not perceived to be as accessible or as affordable to many segments as we probably should have been." We value Disney stock at about $190 per share, which is roughly 70% ahead of the current market price. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. According to the current price, Walt Disney is 67.20% away from the 52-week high. Disneys chief financial officer Christine McCarthy said during the earning call on8 Novemberthat she believed the losses in Direct-to-Consumer had peaked. Build a CFD portfolio with your favourite companies. It also spent less in . 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. Bear in mind that analyst views can be wrong, and that there are many factors that drive the companys stock price. Disney doubled down on its commitment to Disney+ becoming profitable by the end of 2024. Analysts now see the stock, which has languished all year, to hit 145.51 in 12 months. There are several factors weighing the stock down. . Putting Disneys stock price in the $15 territory, a long way from a previous all time stock price high around $43. The majority of retail investor accounts lose money when trading CFDs. DIS. Ron DeSantis signed a bill on Monday, February 27, 2023, which gives him control of Walt Disney World's self-governing district. Disney stock is now trading around levels last seen around April 2020 just as the first set of Covid-19 lockdowns roiled the broader markets. UPDATE: Disney stock values have continued to drop. Iger has the task of finding a new CEO for Disney within the next 12-18 months. Since reaching an all-time high closing price in March 2021, Disney stock has been spiralling down to below its pre-pandemic level. He revamped the theme parks, brought Star Wars, Marvel and Pixar into the company's movie universe, and launched Disney+. But now it's trying to find its footing. The Marvel Cinematic Universe (MCU) has grossed more than twice the amount of the next-highest franchise, Star Wars -- also owned by Disney. This was a remarkable jump from the earnings of the same quarter in the previous year that came in at $0.32. See our analysis of Disney valuation for more information on whats driving our price estimate for Disney and how its valuation compares with peers. DIS . Meanwhile, Disney stock could rise to $121.991 in November 2027, according to the sites projection. To make the world smarter, happier, and richer. Get these newsletters delivered to your inbox & more info about our products & services. Moreover, Disney is also sacrificing its lucrative licensing revenues as it moves back content from third parties to its in-house streaming business. He ultimately reached an agreement with the Disney Board, which added an ally to the Board. He has credibility. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Disney's revenue sources are divided into two streams. 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. Like clockwork, the stock slid. The Motley Fool owns and recommends Netflix and Walt Disney. which lost subscribers. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. *Average returns of all recommendations since inception. This move could attract yield investors whose mandate is not to buy stocks with no yield to initiate positions. 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. 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. IsDisney stockis a buy right now? Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. Theatrical releases, though, continue to struggle. But it needs to find a balance between streaming and in-person revenue. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. 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. This news was received favorably by investors. The Motley Fool->. However, the CEO responsible for Disney's golden years, Bob Iger, is back at the helm and on a mission to make streaming profitable. 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. The number includes 12 million Disney+ subscribers and nine million Core Disney+ subscribers. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. 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. Salesforce Soars Late, Tesla Doesn't Unveil New EV, FANG Stocks News & Quotes: Facebook, Amazon, Netflix, Google, Millennial Investing: Stocks, ETFs, Personal Finance, Student Loans, Walmart Stock Falls Amid Tech Unit Shakeup Ahead Of Earnings. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. 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. However, recent reports state Bob Iger has asked the board to reinstate the dividend by the end of 2023. Activist investors continue to play a cooperative role. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. 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 The major market events for the week ahead right in your inbox. Authors may own the stocks they discuss. The company easily beat Wall Street targets for fiscal third-quarter earnings, revenue and subscribers. The stock is now more than 35% off its 52-week high, according to IBD MarketSmith chart analysis. 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. Axon Stock Lights Up On Big Earnings Beat, Taser News, Apple Is Still The Richest Company By Squatting On Your Money. The company forecast YoY revenue growth in the fourth quarter of 2022 to decelerate to 0.9%. Its clear that some of our pricing initiatives were alienating to consumers. The difference between trading assets and CFDs. 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." Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. Disney has grown its revenue and operating income steadily since 2020 despite various headwinds. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. 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. * Average Estimates in Million (e.g. The DMED segment encompasses the company's global film and episodic television content production and distribution activities. Currently, Disney owns about 67% of Hulu. The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. Iger also told investors that it has new sequels in the works for Frozen, Toy Story, and Zootopia. 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. Disney is taking a page out of Netflix's playbook. The Motley Fool has positions in and recommends Walt Disney and Warner Bros. Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. It's been a roughly ride for Chapek, who is navigating the huge investment needed to keep people subscribing to Disney+, in addition to reopening parks and cruises. Disney+ added 14.4 million subscribers for a total of 152.1 million, above views. When you think about it, Abbott Elementary airs on ABC, then it goes to Hulu. Here's why the stock should bounce back in 2022. 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. Your decision to invest in Disney stock should be based on your risk tolerance, investing goals, and portfolio composition. Is it profitable to invest in Walt Disney Co (The) stock? The services algorithm-driven forecasting system said the stock is an acceptable long-term investment. Wall Street analysts do not provide long-term Disney share price projections. Investors probably shouldnt worry too much about the rising investments Disney is making into its content and streaming operations. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. The demographic difference in age is tremendous. 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! View the latest Walt Disney Co. (DIS) stock price, news, historical charts, analyst ratings and financial information from WSJ. This will be Igers third transformation. Learn More. 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. 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. Disney is releasing seven other films outside of the MCU in 2023. 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? . The Motley Fool has a disclosure policy. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Discovery . 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. 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. Several catalysts led to Disney stock price to increase in 2023. Find the latest The Walt Disney Company (DIS) stock quote, history, news and other vital information to help you with your stock trading and investing. We are not in any way stepping away from streaming. So, we could see those Disney+ subscription numbers grow even more soon. Netflix's stock has . Disney is facing mounting pressure from its streaming business. 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. Disney has undergone a challenging few years, to say the least. These are planned for release over the next few years. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. That makes Disney one of the worst . Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. If you are already a current owner of Disney shares, it may be advisable to hold onto the stock and give Iger's transformative restructuring a chance.