After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?

He’s also written for Esquire magazine’s Dubious Achievements Awards. Indeed, DIS stock has lost 60% of its value since its peak, shedding roughly $220 billion in market cap in the process. To put such a sum in context, $220 billion is more than the entire market values of Dow stocks McDonald’s (MCD) or Salesforce (CRM). What Disney shareholders would probably like to forget is that DIS stock has cratered since then. Disney stock, a long-time market laggard, has shed more than $220 billion in value since its all-time high.

Rare for a stock like this to pop 11% in a day, really positive, seems to be holding. Be really careful around $100, get out if it hits. The author or authors do not own shares in any securities mentioned etoro review in this article. Find out about Morningstar’s editorial policies. Making movies is a hit-or-miss business, which could result in big swings in profitability for the filmed entertainment segment.

Walt Disney Co.(DIS-N) Rating

With Disney, it pays to look at the big picture through time. Yes, 2020 is not a year for the record books — at least not in a good way. For the next decade, though, Disney still seems well-positioned. Online content is going to be the battleground in the entertainment industry; there’s no getting around that. Disney has prepared itself well through acquiring strong assets and building out its own Disney+ service. Once theme park gates reopen and the company can get back to the box office, the puzzle should all fit together nicely for this blue-chip stock.

1. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years.
2. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
3. They reinstated the dividend today which is great.
4. The first reason Disney stock is up is quarterly results.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. Add stocks to watchlist to monitor them daily and get important alerts. They reinstated the dividend today which is great.

Reasons Disney Stock Is Up 12.7% Today

Over the same time frame, the S&P is up 428.6%. Even after a rally, the stock is down around 20% for the year. Theme parks are scheduled to cautiously reopen in July, but investors are going to be watching closely for signs of a second wave of COVID-19 before Disney can really find its footing. Any setbacks in the reopening of the economy could create a big headache for the physical side of the company’s business.

Investing $5,000 would have netted you 1,000 shares of the company. The important thing to take into account here is that the stock has split multiple times through its existence. With seven splits in total from that initial offering, an initial purchase of 1,000 shares would have become 768,000 shares today. For its entire history as a publicly traded company, Disney stock generated a total return (price change plus dividends) of 8.2% annualized. That trails the S&P 500’s annualized total return of 9.8% over the same time span.

The 9-Letter Word Disney Doesn’t Want to Mention but Could Be a Big Part of its Future Growth

He refused to sell it, despite buying 21st Century Fox’s assets in 2019 for too much, installing a new CEO in 2020 which was a bungler, and who overspent on Disney+. After a dismal quarter in Nov. 2022, CEO Chapek tried spinning it as a positive, and that’s when he called for Chapek to resign. Ex-CEO Iger returned and shares bounced for a while, but Disney’s problems are too deep to fix overnight. They will have so much cash that Iger can buy Hulu without straining cash flow. But it was a mistake to believe in this when shares were in the $180s.

It was far more likely that the average person invested in this offering. A $5,000 investment at $13.88 a share would have gotten you 360 shares. Factoring in all the stock splits would have turned those 360 shares into 141,312 today. At a price of $116.59 per share, the $5,000 investment in the IPO would be worth $16,475,566 today. Even veteran investors can fall in love with a stock. That’s what happened with DIS, which he held onto as it lost over half its value since 2021.

And he likes the moves of the activist investor, Peltz. Create a list of the investments you want to track.

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 pepperstone broker review 1 stock split in the summer of 1998. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. Going off of a June 11 price of $116.59 per share, that initial $5,000 investment is now worth a whopping $89,541,120.

The parks and consumer segment suffered a 37% decline in revenue in fiscal 2020 and a 3% decline in fiscal 2021. Following a strong bounce back of 73% in 2022, we expect more normalized growth of 5% over the next five years. 2009 was a tough year for Disney and the market as a whole. Walt Disney Co. reported Q1 profit that fell substantially short of analysts’ expectations which sent the stock price to a 10% decline in after-hours trading. Putting Disney’s stock price in the $15 territory, a long way from a previous all time stock price high around $43. Investors who put $1,000 into Disney 25 years ago in February 1997, mere months before the animated hit “Hercules” hit theaters, would have seen a 541% return and an investment that would be worth $6,412 today.

Shareholders in Walt Disney (DIS) probably wish they were celebrating the media and entertainment conglomerate’s 100th anniversary under happier circumstances. Although Wall Street continues to be bullish on the name, the past couple of years have been brutally tough on this bluest of blue chip stocks. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

The first reason Disney stock is up is quarterly results. Revenue was flat versus a year ago at $23.55 billion but earnings of $1.22 per share easily passed the $0.99 that analysts were expecting. Cost-cutting measures have taken hold faster than expected and management said it expects to exceed its goal of $7.5 billion in cost cuts set in 2023. Even if successful, newer revenue sources like direct-to-consumer streaming will never equal the profitability Disney once enjoyed.

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. Instead of trying to beat the market, index funds allow you to keep octafx review up with it. And because the stock market has historically increased in value over time, these low-cost funds are considered relatively safe, reliable investments. But this doesn’t mean that the S&P is a worse investment. Disney’s IPO pricing for the original OTC stock was $5 per share back in 1946.