Barclays increased its PT to $95 from $88, while UBS raised its to $120 from $110. Additionally, Needham upgraded its rating from hold to buy, setting a target of $120. It was inevitable that consumers wouldn’t be able to afford the park prices in the long term so attendance would wane.
This contributed to it earning the unfortunate milestone of being Marvel’s lowest-rated sequel on Rotten Tomatoes with a critics score of just 46%. During the peak summer season this year, social media was awash with reports of how quiet it was at Walt Disney World in Orlando, Florida. There was so much chatter that CNBC asked Disney’s chief executive Bob Iger about the low crowds which he claimed were due to the high temperatures in the sunshine state. Visit a quote page and your recently viewed tickers will be displayed here. Iger also is making considerable progress to contain costs and bring Disney+ to profitability by the end of 2024, according to the original goal. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
- The cost of sports rights may continue to skyrocket, putting pressure on margins.
- Disney’s ability to monetize its renowned characters and franchises across various platforms, along with the continuous expansion of its library through new franchises, contributes to its long-term value generation.
- The basic version is free but guests have to pay to upgrade to Genie+ and then book Lightning Lanes for rides to skip the standby queues which can last for hours.
The brakes were even put on the parking lot trams which generated so many guest complaints that it reached late-night television with Stephen Colbert mocking Disney for not providing the service. When 2012 team-up movie The Avengers became the first shooting star forex Marvel Studios movie to cross the $1 billion mark, the franchise gained even more importance to Disney. It began a process of institutionalization leading to movies based on characters who appeal to a diverse range of groups to maximize takings.
We believe the quarter validates the strength of Disney’s assets and the firm’s ability to survive the evolution of the media industry. We’re maintaining our $115 fair value estimate and now believe the stock is only modestly undervalued. This non-film part of Disney’s business, called its Disney Parks, Experiences and Products segment, enjoyed strong revenue growth in 2023.
DIS Stock Analysis – Frequently Asked Questions
Flogging this horse isn’t just expensive, it’s self-defeating as it means that if viewers miss one movie they might not watch future instalments for fear of not understanding them. Marvel’s upcoming streaming slate includes series based on B-List spinoff characters called Echo and Ironheart. That doesn’t sound like something from a studio that is trimming the fat. If Marvel had scrapped these shows and got a tax write-off it might perhaps not have needed to cut so many jobs. More fundamentally, putting its chips on streaming placed Disney in direct competition with theater chains which are its clients. So the financial gains from streaming come at the expense of revenue from exhibitors.
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“The last thing investors want to see to solidify support is content hits,” he said, citing projects slated for the second of 2024 including “Deadpool 3,” “Moana 2” and “Mufasa” as opportunities. Instead of slashing so many jobs, Disney should perhaps have scrapped Marvel’s upcoming shows based on less-known characters, paused its interconnected storytelling and dropped Lightning Lane and Genie+ from the parks. These features present persistent challenges and a perfect storm for Disney.
Walt Disney Company Stock at a Glance
A month later, Disney stock price dropped below $30, which was a year to date low. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. The company also said it would launch an ESPN streaming service in 2025; stream an exclusive version of musician Taylor Swift’s Eras Tour movie on Disney+; and release a sequel to hit “Moana” this year. Its p/e ratio is elevated at 27.04% and it does not offer a dividend, according to Macrotrends.
Walt Disney Stock Snapshot
He is known for such successes as the launch of the animated film Frozen and the acquisition of Marvel. Iger set to work quickly, cutting costs and reorganizing departments to put the focus back on creativity. Earlier this year, he said the company would target $5.5 billion in cost savings. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
Until his appointment as CEO on Feb. 25, 2020, Chapek spent nearly three decades at Disney, heading the company’s theme parks unit from 2015. In that role, Chapek dramatically expanded the company’s parks and related offerings, launching the Shanghai Disney Resort and nearly doubling the Disney Cruise Line fleet. Over Iger’s previous tenure, the company’s earnings climbed, and the stock price soared. While the market as a whole rallied in the first half, the entertainment company missed out on the excitement. This is even after longtime Chief Executive Officer Bob Iger returned and launched a plan to boost growth.
There were two more 2 for 1 stock splits shortly after in 1977 and 1973. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. 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. All these stock splits work out as 1 https://g-markets.net/ share purchased at IPO being the worth 384 shares today. But Disney is capable of successfully navigating these industry transformations thanks to its copious collection of beloved characters and brands making up Disney’s intellectual properties. From Mickey Mouse to Marvel Comics, Disney’s icons are known the world over.
Genie+ and Lightning Lane are great ways of generating revenue in a bull market but when things turn bearish they look like a liability. Given the huge sums that the US government paid out during the pandemic it was crystal clear that inflation would rise and there would be a risk of recession so Genie+ and Lightning Lane weren’t perhaps as smart as they seemed. In summary, the free and simple Fastpass system has been replaced with one which is complex, costly and time consuming.
We’d like to share more about how we work and what drives our day-to-day business. With its 4-star rating, we believe Disney’s stock is undervalued compared with our long-term fair value estimate. At the time of publication, DIS stock has added 8.25% to its value since the previous closure, putting its valuation at $107.32. The partnership follows Disney’s success in licensing iconic figures like Spider-Man for popular video games. Additionally, Disney has previously collaborated with Epic to introduce characters from Marvel, Star Wars, “The Nightmare Before Christmas,” “Tron,” and other franchises into Fortnite.
Its early movies innovated by grounding their characters in the real world. They dispensed with typical superhero tropes like secret identities and gaudy costumes. Further challenging conventions, Marvel hired a heavyweight cast including Scarlett Johansson and Robert Downey Jr.
The movies were a hit with adults as they treated cherished characters from their childhood seriously. In turn, this enabled parents to enjoy the movies with their own children thereby fueling the Marvel Studios machine. Over the past few years dark clouds have gathered over two of Disney’s biggest cash cows — its theme park division and Marvel Studios. Notably, it has introduced Genie and Genie+ services, which are available via a mobile app. Disney Genie is a complimentary service which provides personalized itineraries and planning for a Disney resort visit. Disney Genie+ is the advanced version, available for $15 per ticket per day, which also allows users to use the Lightning Lane (previously known as the FastPass program) for faster access to several attractions per day.
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