The Walt Disney Company (NYSE: $DIS) is a legendary brand with a rich history. Its origins trace back to 1923 when brothers Walt and Roy Disney began their journey in response to a distributor’s request to create the “Alice Comedies.” Initially named the Disney Brothers Cartoon Studio, the company swiftly transitioned to become the Walt Disney Studio.
Over the course of the past century, Disney has evolved into a renowned media and entertainment powerhouse, showcasing an unparalleled array of iconic brands and franchises.
In recent years, Disney has made substantial investments to establish itself as a leading player in the streaming industry with Disney+.
The company has allocated significant resources towards content creation, aiming to expand its subscriber base and ultimately achieve long-term profitability.
Disney is confident that these investments will yield significant returns in the years ahead.
The potential for profit growth through Disney+ presents an enticing opportunity for Disney shareholders, indicating that Disney is a compelling stock for investors to contemplate.
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Disney Stock Recent News Update
Disney’s stock is worth a buy despite linear challenges, says this new bull
Walt Disney Co. faces its share of challenges, but it stands as the sole credible contender to Netflix Inc., a key reason why Bernstein recommends purchasing the company’s stock.
Bernstein analyst Laurent Yoon initiated coverage of Disney’s shares with an outperform rating, noting that although he holds a pessimistic outlook on Disney’s linear-media business, he is bullish about Disney’s potential in the streaming sector, particularly as the company seeks to acquire the remaining portion of Hulu that it doesn’t already possess.
Yoon anticipates that Disney will eventually provide more transparency regarding Hulu’s financials, including its margins.
However, he believes that Disney is currently cautious about overstating Hulu’s potential, as doing so could lead to higher costs when negotiating to buy the one-third share of Hulu currently owned by Comcast Corp.
He envisions significant synergy opportunities for Disney if it were to gain full ownership of Hulu alongside its existing Disney+ and ESPN offerings.
“A bundle featuring Disney+ and Hulu would emerge as a robust competitor to Netflix, offering a comprehensive array of both shows (Hulu) and movies (Disney+),” Yoon commented.
Although the precise overlap between the two products remains undisclosed, Yoon believes that Disney will come close to matching Netflix in terms of the combined average revenue per user (ARPU). He also considers Disney+ to be attractively priced.
Furthermore, Yoon holds an optimistic view of Hulu’s international potential. He estimates that even on the conservative end, considering Hulu’s comparable foreign content to Warner Bros. Discovery, incremental revenue could reach $2 billion.
However, depending on bundling strategies and content investment, this figure could potentially approach $9 billion.
In his communication to clients, Yoon stated that Disney possesses the most promising direct-to-consumer business within its traditional media peers. He has set a target price of $103 for the stock.
Yoon acknowledges that it will take some time for Disney to strike the right balance in terms of pricing and content strategies.
Nevertheless, he believes that once Disney achieves this balance, its margins should not lag significantly behind Netflix, contrary to what the current trading multiple suggests.
Disney stock hits new 9-year low; What’s wrong with DIS?
In the year 2023, Disney, the renowned media and entertainment conglomerate, has experienced a disappointing performance in the stock market.
The company has faced a substantial double-digit percentage decline, frustrating investors due to mounting losses within its streaming division, which were exacerbated by a bleak economic outlook.
Earlier in the year, Disney encountered significant backlash stemming from a controversial campaign, further contributing to its sluggish stock performance.
This downward trend persisted on Wednesday, October 4, when Disney (DIS) concluded another trading session in the red, reaching a 9-year low.
The stock closed with a 0.28% decline at $79.32, with a previous low of $78.73, a level not seen since October 2014. Disney’s stock market struggles in 2023 can be attributed to a series of challenges confronting the mass media company.
One of the primary factors is a stark decline in the number of subscribers to Disney+, its streaming service, which incurred losses of $512 million in the last quarter. This slump brought the total streaming losses since Disney+ was launched in 2019 to over $11 billion.
According to the quarterly report, Disney+ lost approximately 11.7 million global subscribers in the three months ending on July 1, reducing the total to 146.1 million.
Furthermore, Disney has grappled with decreasing visitor numbers at its theme parks, produced several unprofitable movies, and engaged in a legal dispute with Florida governor and U.S. presidential candidate Ron DeSantis.
Naturally, these challenges have had an impact on Disney’s financial performance, with the company’s revenue growing by a mere 6% during the first nine months of fiscal 2023. Concurrently, net income for the same period amounted to $2.7 billion, marking a 17% year-over-year decline.
What To Know About Disney Stock Before Investing
Can I buy stock in Disney?
Certainly, you have the option to purchase and sell shares directly using The Walt Disney Company Investment Plan. The necessary documents, such as The Walt Disney Company Investment Plan Prospectus and Enrollment Form, can be found under the Forms tab.
Can you make money on Disney stock?
Investing in Disney stock has the potential to yield rewarding long-term returns. It’s readily available for purchase through most brokerages, making it a convenient option.
It’s crucial to assess whether Disney aligns with your investment goals, as it may not be the ideal choice for every investor.
What is the highest Disney stock price?
Disney’s stock achieved its record high closing price of $201.91 on March 08, 2021. The highest price it has reached in the past 52 weeks stands at $118.18, representing a 42.5% increase compared to the present share price.
On the other hand, the lowest price during the same 52-week period was $78.73, which is 5.1% lower than the current share price. The average Disney stock price over the past 52 weeks amounts to $93.75.
Who owns most of Disney’s stock?
Disney is a publicly traded company with a multitude of shareholders. According to CNN Business News, the largest shareholder of Walt Disney Co. is the Vanguard Group, Inc.
How many companies does Disney own?
The Walt Disney Company holds ownership in more than 200 companies, both through direct and indirect means. These companies encompass a diverse array of sectors, including movie and music studios, television channels, news networks, and video games.
Notably, Disney is widely recognized as the entertainment conglomerate that possesses both Lucasfilm and Marvel.
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