It was only a few years ago Disney Interactive was just turning around after years of losses. Now it looks as if now and in the future Disney's Interactive Unit will be a huge bottom line winner with Marvel, Star Wars, Pixar and many of the Disney regulars. This is going to get a lot of traction going forward world wide. A rising division which is not getting much attention right now but it will by the end of the year.
If the movie has "legs" , this week and next weekend could certainly tell the story. A strong hold on the box office into next weekend will be a true test in North America. There is little competition coming out next week which will likely be a big boost for the weekend again. The China release is just a week away with expectations of the most screens ever for a new release. Not forgetting Japan to follow.
It's going to take six or seven days to cover all the short positions out there. Based on about one third being covered on a good earnings report (and any additional upgrades) you could see a three to five percent spike up in the stock after hours on Tuesday and new record highs on Wednesday.
It is my understanding Disney is a licensee and just takes a cut of the action with no cost for development of the product. In the past the expenses were so high for development Disney was constantly losing money. Now it is turned around and the fees and royalties are a high profit. I believe it will grow exponentially in the next couple of years. Think Star Wars going forward and more Marvel. Disney makes a cut of all the products whether they produce them or not. Its a good thing.
Obviously you just don't get it. Is your message supposed to scare the market.? A one percen tincrease over the next year is already factored into the market. If it comes in two or three steps over a year or so it will not
make much of a difference. Just remember its already artificially low and should be about two and a half percent. Disney is on its own path with strong earnings numbers and real earnings growth.
Something was going on after hours today 7/01. Usually you see a few thousand shares but today over 170,000 shares with a 90,000 block at the high (buy) and a 50,000 block on the sell side at 114.88. It was a busy day for Disney.. Possibly options action.
It took a few years for Disney to get off the annual dividend payment which was based on
the amount it cost to snail mail out millions of checks to shareholders holding only 1 to 10 shares.
Electronic registration has reduced the cost of mailing and will continue to reduce over the next few years.
I suspect the quarterly dividend will return in a couple of years. This will keep investors in with a more
consistent payout as opposed to jumping in for an annual or semi-annual payout. Disney has a free cash flow of about 2.5 billion.
Japan results for Avengers Age of Ultron shows a 2015 record north of 6.5 million. Ultron continues to play in North America and Japan should add another 30 to 35 million to global box office revenue. MARVEL-the gift that keeps on giving.
Just a clarification: Disney's free cash flow of 2.5 billion for the last quarter alone. I expect this will continue to grow into the fiscal year end in September.
This is going to be a big transformation into Disney Marvel Pixar or some combination with Lucas and Star Wars figured in there some place. The plans are big and growing as Shanghai Disneyland wraps up construction and prepares for a grand opening. My opinion is the new "Disney Studios" park will be the next huge theme park in Florida. This is going to be a big profit driver adding a tremendous capacity to this park.