For 2023 fiscal year, Disneyexpected to spend cash content in the low of $30bn and $6.7bn of capital expenditure, up from $5bn in the 2022 fiscal year, McCarthy said. 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. For fiscal 2021 Disney earned $3.03 a share, 270% better than fiscal '20. Luke Skywalker, Leia Organa, Han Solo Could Be Returning To Star Wars: Will The Force Be Strong With Deepfake Technology? 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. its popular franchises like Marvel and Star Wars in the fourth quarter of 2022 on Disney Plus, according . It accounts for six of the 20 highest-grossing movies ever, and it generated 21% of all domestic ticket sales in 2020 and 2021. 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. Its "Lightyear" film opened to disappointing results. 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. Yes. It's a new calendar year for Walt Disney (NYSE: DIS) investors, and so far, 2023 looks pretty good. The reopening of economies and activities around the world has slowed demand for streaming services, as employees and children have either fully or partially returned to offices and schools. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. That leads to why I think Disney has a strong shot at a great year. Since my return, I have drilled down into every facet of the streaming business to determine how to achieve both profitability and growth.. Consider Disney's 2022 film slate versus its competitors. Get market updates, educational videos, webinars, and stock analysis. 2009 was a tough year for Disney and the market as a whole. But the company kept growing. 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. The Motley Fool owns and recommends Netflix and Walt Disney. If it . The Motley Fool has a disclosure policy. Iger is getting his ducks in order in his third transformation. DIS . 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. 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 . As a result, Disney has a lot of work ahead to return to its pre-pandemic form. In the fourth quarter of 2022, Parks & Experiences booked revenue of $7.42bn, jumping 36% from the year-ago period of $5.45bn. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium 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. Its like 60-years-old or around, estimating on ABC and then the 30s on Hulu. McCarthy is implying that subscription growth should follow the timing of new content releases. 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. It's still recovering, but hit films are drawing in viewers. Read on to find out. It's one of Pixar's only bombs. The stock is now more than 35% off its 52-week high, according to IBD MarketSmith chart analysis. Disney's shares haven't done well in the past year as well. GERMANY - 2022/05/30: In this photo illustration, a Disney logo seen displayed on a tablet. According to Variety, Disney spent about $460 million producing and promoting the film. Discovery. Morningstar assigned Disney a wide economic moat rating and $170 fair value estimate in its Disney stock forecast. 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. Data source: IMDB. Written by However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. Key Points. Discovery . It's no surprise that you'll hear varying opinions about the company's prospects and whether or not you should buy its stock. Create your Watchlist to save your favorite quotes on Nasdaq.com. balance sheet and inputs from the stock market. Since reaching an all-time high closing price in March 2021. . Much of this content will come later in the year, as McCarthy said, "We expect Disney+ subscriber net adds in the second half of fiscal 2022 will be meaningfully higher than the first half of the year.". 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. Marvel has two more films for theater release in 2023, and another seven slated for release through 2026. Management said that range will now be higher, as they ramp up spending on local and regional content. On 12/29/2022, I gave a sell rating to Disney DIS at $87.18 based on this investment theme. 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. We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base, Macker said. However, the next day, on February 9, 2022, he suggested the possibility of selling Hulu during an interview with CNBC. In August 2011 Disney saw its stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. 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. Following Disney (NYSE: DIS) and its escapades over the past few years has been at least as exciting as paying money to see one of its blockbuster films. Dani Cook has no position in any of the stocks mentioned. Disney suspended its dividend at the start of the COVID-19 pandemic, with its last payment date in January 2020. The pandemic depleted its parks and box office revenue in 2020 and 2021. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! That makes Disney one of the worst . Disney stock is struggling to regain its footing as the economy bounces back from the worst of the pandemic. Google The China Trade: Demand Boom or Inflationary Bust? And reopening movie theaters are boosting prospects for box-office sales. It is also a constituent of the S&P 500 index (US500). The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. I have always believed by the way, that accessibility is a core value of the Disney brand. Tim Allen-free "Lightyear" fails at the box office Last summer , Disney released "Lightyear," the newest film in the "Toy . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Our current forecasts indicate Disney+ will hit profitability by the end of fiscal 2024 and achieving that remains our goal. Privacy Policy & Terms of Use. Like clockwork, the stock slid. With our expectation that peak losses are now behind us, DTC operating results should improve going forward as we lay the foundation for a sustainably profitable business model, McCarthy said. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Stock Price Forecast. The Walt Disney Co. is a diversified international family entertainment and media enterprise. Opinions expressed by Forbes Contributors are their own. We expect that Iger will unwind some of the major changes put in place by Chapek. The stock is currently changing hands at $160.95, down 7.74% from the start of trading. The latter has expanded very successfully across international markets based on its focus on producing local language content. 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. If Disney decides to reinstate its dividend, it may have a minimal impact on shareholder value. financial performance of Disney, which is cyclical. 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. Learn all the ways IBDs top investing tools can help you succeed in the market! NFLX DTCs full year 2021/2022 revenue was up 8% to $55.04bn, from $50.86bn during the same period a year earlier. And the gains are not over yet. 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. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. Florida is home to Disney's largest theme park complex. Always conduct your own due diligence by reviewing the most recent analyst commentary, Disney stock news, technical and fundamentals analysis. This isnt going down well with investors, who are increasingly focusing on cash flows as interest rates rise. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. In 1955, Walt's theme park came into fruition as Disneyland in Anaheim. Growth followed, with Disney adding 12.4 million subscribers in the third quarter ending July 3. 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. Disneys earnings are likely to rebound strongly this year, driven primarily by the recovery in its lucrative theme park business. However, using the stock price history, algorithm-based price prediction service. On 10 November, Disney reinstalled Robert A. Iger as chief executive officer as Chapek stepped down. There's just so much to unpack when it comes to the world's largest (and perhaps most complex) entertainment company. 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. . Disney stock is listed on the New York Stock Exchange (NYSE) under the ticker DIS. 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. Bear in mind that past performance does not guarantee future results, and never invest or trade money that you cannot afford. 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! In 2020, Disney pleased its shareholders with around 25% stock return. More freedom in that process should lead to content being provided in the right medium to make the most money. 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. However, the CEO responsible for Disney's golden years, Bob Iger, is back at the helm and on a mission to make streaming profitable. 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. Fiercer competition from streaming rivalNetflix (NFLX) and a post-pandemic slowing of the stay-at-home trend have put pressure on its streaming services. 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