Now, his pivot to possibly unwinding Disney’s assets shows how much things have changed for the entertainment giant and for Iger. Iger earned a reputation as Hollywood’s consummate dealmaker, acquiring Pixar, Marvel, and LucasFilm/Star Wars, a hit list of brands chock-full of intellectual property that has paid off handsomely for Disney. The deal with Fox was his most expensive acquisition, but the verdict is still out on that one. Additionally, Walt Disney’s earnings are expected to grow 21.5% for the current fiscal year. The Motley Fool has positions in and recommends Walt Disney. On top of earnings, Disney announced a $1.5 billion investment in Fortnite maker Epic Games and said ESPN will launch a completely rebuilt app over the top in fall 2025.
- All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today.
- Disney’s stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002.
- Iger surprised the market with another announcement just last week, telling CNBC that its traditional TV networks “may not be core to Disney,” leaving the door open to a potential sale of assets like ABC.
- Meanwhile, Iger’s contract recently was extended through 2026, showing Disney’s board has confidence.
- As for ESPN, Iger said the company may search for a strategic partner for its sports media empire, which could include a joint venture or selling an ownership stake.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. According to our valuation model, Walt Disney seems to be fairly priced at around 9.03% above our intrinsic value, which means if you buy Walt Disney today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $98.82, there’s only an insignificant downside when the price falls to its real value. Since Walt Disney’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. In August 2011 Disney saw it’s stock price drop nearly 14% in one day after a number of multiple analysts downgraded it.
Disney’s stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. 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. 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.
Walt Disney Analyst Data
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 share purchased at IPO being the worth 384 shares today. Selling off the traditional TV assets will put even https://www.topforexnews.org/software-development/how-to-become-a-full-stack-web-developer-in-2021/ more pressure on the streaming division, and Disney doesn’t expect streaming to be profitable until the end of fiscal 2024 or next fall. However, those thinking that the stock is a bargain just because the price is low may have a long wait until it rebounds.
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. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
That’s why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that’s been proven to generate strong returns. Iger surprised the market with another announcement just last week, telling CNBC that its traditional TV networks “may not be core to Disney,” leaving the door open to a potential sale of assets like ABC. As for ESPN, Iger said the company may search for a strategic partner for its sports media empire, which could include a joint venture or selling an ownership stake. Burbank, CA-based Walt Disney Company has assets that span movies, television shows and theme parks. Three factors drove the media stock higher and they set the company up for even more long-term success.
Walt Disney Calendar
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. 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. Second, for the full fiscal year, management said it expects earnings to increase at least 20% to around $4.60 per share and free-cash-flow generation to be about $8 billion.
Walt Disney Analyst Opinions
Walt Disney (DIS -0.71%) reported fiscal first-quarter 2024 financial results for the period ended Dec. 30, 2023, after the market closed on Wednesday and investors liked what they saw. Shares were up caterpillar shares outstanding 12.7% in early trading on Thursday and are still up 11.8% at noon E.T. If you’re a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve.
In light of this, if you’d like to do more analysis on the company, it’s vital to be informed of the risks involved. While conducting our analysis, we found that Walt Disney has 1 warning sign and it would be unwise to ignore it. DIS was added to the Zacks Focus List on March 23, 2020 at $85.98 per share. Now, let’s take a deep dive into a great stock that could be just the right addition to your portfolio. If you had invested $1,000 in Disney’s IPO your stock today would be worth over 3 million dollars today.
Linear TV is declining, and streaming has yet to pan out.
If you are no longer interested in Walt Disney, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.18 to $4.57. Even https://www.day-trading.info/what-is-forex-trading-how-to-trade-online/ Netflix, the streaming pioneer, though profitable, burned billions in cash annually for years in an effort to build a membership base of more than 200 million that allows it to turn a profit. In fact, Disney has underperformed the market over any time frame over the last 10 years, and it’s no secret why.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The writers’ and actors’ strike could hasten progress toward that goal, but the process of balancing spending with revenue in streaming is likely to take years to play out. This is reminiscent of what happened to print publications in the early days of the internet with many decimated by the new media channel. Several streaming services, launched during the pandemic as demand for at-home entertainment soared. This supported Disney+ and its other streaming services, but also dealt a blow to Disney’s box-office releases, live sports coverage, and its theme parks.