The Walt Disney Company: Where’s The Magic? NYSE:DIS

During the last 6 months the consensus EPS estimate amongst Wall Street analysts for Disney has fallen by roughly 10.2% for fiscal 2024 and by roughly 13.6% for fiscal 2025. During the last 3 months the consensus EPS estimate amongst Wall Street analysts for Disney has fallen by roughly 8% for fiscal 2024 and by roughly 10.4% for fiscal 2025. If those two assumptions prove to be correct, someone buying shares today in the $80 area would be looking at an annualized total return CAGR of ~23.8% over the next couple of years. It wasn’t all that long ago that analysts were projecting that Disney would regain that $7.00/share bottom-line level in 2025, which factored into the stock’s big rally during 2021. The huge debt load included with the Fox deal combined with the massive cash flow shortfalls that occurred when the pandemic occurred have been the major one-two punch that has hurt Disney during the last 5 years or so. And, it’s worth noting that that annual result was down 19% from Disney’s all-time high adjusted annual EPS figure of $7.08 that it posted in 2018 before its massive Fox deal closed in March of 2019.

  1. For instance, they can invest in Disney stock on the NYSE stock exchange, so they actually own a share in the company.
  2. Guests can also enjoy themed vacations under the National Geographic banner and others.
  3. The global box office still hasn’t bounced back…as you can see below, only 1 out of Disney’s top 30 movies of all-time (#29, to be exact) came out after 2020.
  4. Reporting its first quarter earnings for fiscal 2020, the Walt Disney Company’s CEO Robert A. Iger said, “We had a strong first quarter, highlighted by the launch of Disney+, which has exceeded even our greatest expectations.

The new divisions provided new avenues for growth that helped accelerate the company’s business to a record high revenue near $85 billion in F2022. 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. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place.

Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, they can invest in Disney stock on the NYSE stock exchange, so they actually own a share in the company. This can be considered a long-term investment, as the individual is usually waiting for the price to rise over time. Alternatively, they can trade Disney shares through a contract for difference (CFD) and speculate on the price difference of the underlying asset, without actually owning it.

In Q3 of 2019, the combined operating income of those 3 segments was $2.375 billion (more than double today’s profitability results). Disney is sitting atop a mountain of legacy IP and goodwill from consumers, but that can disappear if they don’t begin to execute in a more consistent fashion. And, you don’t have to look hard to find a Star Wars fan, or a comic book connoisseur, who is unhappy about the direction that Disney has taken the characters and the plotlines from recently acquired IP. Sometimes this can be very difficult to do (especially if you’re someone who is passionate about politics). Now, when it comes to investments, we generally believe that it’s best to separate politics from portfolio management. Now, there are questions about who will lead Disney after Iger’s second stint.

The History of Disney’s Stock Price by Markets Insider

It’s also possible that Disney doesn’t meet that long-term consensus of $5.71/share. Netflix (NFLX) has been the leader in the streaming space for over a decade now and last year their cash flows were only $1.6 billion (on ~$32b in sales). And frankly, there’s no telling if/when this company will figure out how to profit from content in the streaming age in a meaningful way. Because IP is the fuel that trickles down and runs all of Disney’s diversified business segments. So, there’s an argument to be made that the box office is alive and well again…and that Disney has been left behind.

This is just one of the major question marks that this company faces moving forward. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today.

This segment also hosts streaming services including but not limited to Disney+, ESPN+, Hulu, and Star+ as well as post-production services by Industrial Light & Magic and Skywalker Sound. The company is based in Walt Disney Studios, Burbank, California, and is best known for its work in animation and for creating the character Mickey Mouse. Over the years, the company expanded into live-action movies, theme parks, and even new corporate divisions such as Pixar, Marvel, and Lucasfilm.

What factors affect the Walt Disney stock price?

With so many questions surrounding this stock, it’s impossible to provide a clear answer to readers here. You don’t become an icon like The Walt Disney Company without an immense amount of talent and human capital capable of massive problem solving. Simply put, Disney hasn’t figured out how to make money with its IP in a streaming-driven world.

Walt Disney Stock Snapshot

Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. Disney’s stock price steadily grew during these stock split periods finally going past $25 in 1997, there was slight tumultuous period over the next few years but Disney’s stock price was most hit in the early part of the next decade. As with any equity, quarterly earnings announcements, as well as the financial performance of the wider stock market are two crucial factors to watch when deciding how Walt Disney stock will perform.

The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. About 90 years after the creation of Walt Disney’s famous Mickey Mouse, the company continues to entertain children and adults around the globe. According to, Disney is one of the largest companies in terms of market value and is ranked the fourth most reputable company in the world. Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. But Disney no longer pays a dividend to support patient investors and while management has mentioned reestablishing one in the near-term, that’s not something that we’re going to bank on.

If historical averages hold and Disney shares maintain their ~22x P/E levels moving forward, then they’re very likely to outperform the market. If the stock’s EPS bounces back like analysts are currently expecting, then DIS shares will likely be much higher than this best crypto apps and exchanges of may 2023 worst-in-a decade price point in 2-3 years. So that was a major success for the company; however, none of its recent films from its legacy studios have crossed up above that $1b threshold which was the pre-pandemic measuring stick of success for this company.

Historically, Disney’s firm stance as the king of content allowed its shares to trade at a premium to its peers and the broader market as a whole. After all, Disney is an iconic American brand within the media/entertainment space and it’s very rare to see companies like this experience such negative sentiment. In 1996, the company acquired Capital Cities/ABC for $19 billion, which gave the Walt Disney Company the ability to broadcast its entertainment content on the Internet.

The Disney Parks, Experiences, and Products segment includes a network of theme parks, resorts, and cruises under the Walt Disney World and Disneyland banners. Parks include the flagship Walt Disney World in Florida, Disneyland Paris, and Hong Kong Disneyland Resort. Guests can also enjoy themed vacations under the National Geographic banner and others.

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