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DIS - The Walt Disney Company

NYSE - NYSE Delayed Price. Currency in USD

132.79

+0.06 (+0.05%)

At close: 4:02PM EDT

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Trade prices are not sourced from all markets

Previous Close	132.73
Open	133.10
Bid	132.66 x 900
Ask	132.60 x 900
Day's Range	132.22 - 133.29
52 Week Range	98.81 - 142.37
Volume	4,382,227
Avg. Volume	14,142,925

Market Cap	238.982B
Beta (3Y Monthly)	0.68
PE Ratio (TTM)	14.86
EPS (TTM)	8.94
Earnings Date	Aug 5, 2019 - Aug 9, 2019
Forward Dividend & Yield	1.76 (1.28%)
Ex-Dividend Date	2018-12-07
1y Target Est	149.22

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News

Press Releases

Investopedia16 hours ago
Movie Vs. TV Industry: Which Is Most Profitable?
Which entertainment sector is more profitable: movies or TV? Let’s take a look. You might be surprised by the results.
MarketWatch19 hours ago
‘Aladdin’ expected to lead weekend box office, but estimates are lower after scathing reviews
The live-action “Aladdin” film starring Will Smith is expected to lead the box office over the Memorial Day holiday weekend, but estimates for receipts have been scaled back following some bruising reviews.
Motley Fool20 hours ago
Disney World's Hottest Park Will Be Its Coldest in 2021
Disney's Animal Kingdom has seen its guest count soar 27% over the past two years, but the same catalyst for its revival could also be what causes its slide in popularity in the next two years.
Associated Press2 days ago
CEO Pay: When investors say "nay" on spiraling packages
The stock market is in the midst of the longest bull run on record. The median company in the survey received a 94% approval rate on its "Say on Pay" vote, where shareholders give a thumbs up or thumbs down on executive compensation.
American City Business Journals2 days ago
Study: Tourism industry's strength relies in expanding intellectual property
The region is home to some of the biggest pop culture properties, including Star Wars, Harry Potter and Marvel.
Motley Fool2 days ago
3 Must-See Quotes From Roku Management
Roku management talks advertising, new streaming services, and more.
Investing.com2 days ago
Lions Gate Entertainment Whimpers Midday After Earnings
The company reported a fall in revenue for the quarter to $914 million compared to $949.5 million expected.
Investopedia2 days ago
10 Stock Market Leaders Amid the Trade War Upheaval
Stock investors looking for a way to outperform amid the trade war's major upheaval should look at Goldman Sachs' Hedge Funds VIP list.
InvestorPlace2 days ago
3 Reasons Why Disney Stock Could Avoid Becoming A Trade War Casualty
I don't know what Disney (NYSE:DIS) CEO Robert Iger does day to day. However, I'm sure one of his actions over recent weeks involved a face-palming. That's because DIS stock, which is in the middle of a critical pivot, now faces a possibly severe headwind.Source: Baron Valium via FlickrMaking headlines throughout the world is the ongoing and escalating U.S.-China trade war. It's taken a lot of companies like Disney by surprise. Just a month ago, the tea leaves suggested that a resolution was imminent. Both Washington and Beijing agreed to hash out their differences.But a sharply worded Twitter (NYSE:TWTR) posting from President Trump -- is there any other kind? -- scuttled optimism. As usual, the former real-estate mogul doubled down on his about-face sentiment. Fearing losing face to its citizenry and the international community, China pushed back. The trade war is back on, and so, too, are concerns for the Disney stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Stocks to Buy for Anxious Investors For Iger, the situation must be doubly frustrating. He sat on Trump's business council two years ago and was among the execs who advised the President against igniting an all-out trade war. Interestingly, DIS stock was incredibly choppy until relations appeared to smooth out.Now, Iger is exactly where he begged the business gods not to place him in. Like a pivotal point in a Marvel action movie, just when DIS stock gained decisive momentum off its Disney+ streaming platform, shares have slammed into a wall.With competition expanding in the broader entertainment arena, China presented a glowing opportunity. A country four times the size of the U.S. population, the Asian juggernaut was a license to print money.But before giving up on Disney stock, here are three things to consider: DIS Stock Levers "Status Symbol" BrandsOn the surface, a trade war would spark a nationalistic fervor in China against the "imperialist" Americans. Building off the uproar, the Chinese government will urge (or force) its citizens to boycott all U.S.-made goods and services. Naturally, this would hurt the Disney stock price.In reality, I think the reaction toward a company like DIS will be much more nuanced. I say this because social status in China remains an important factor in everyday life.For instance, when we go grab a quick bite to eat at Pizza Hut or McDonald's (NYSE:MCD), we don't think twice about it. But in China, the situation is much different. If you want a slice at Pizza Hut in Xiamen -- owned by Yum China Holdings (NYSE:YUMC) -- you better get a reservation. I'm not kidding!Like the historical impact of the first McDonald's opening in the Soviet Union, the Chinese still have fond memories of western integration. In my view, this helps Disney stock. The underlying brand represents America in ways other brands can't quite capture.As far as status goes, it's an incredible luxury for an average Chinese family to visit Shanghai Disneyland. So, I'm not overly worried about the trade-war impact here. Disney Stock and That Content EmpireAnother area that deteriorating U.S.-China relations can't touch is Disney's content. Quite simply, the Magic Kingdom has plenty of it, and most of these licenses are extremely lucrative.If you follow my writing on InvestorPlace, you'll know that I'm generally bullish on streaming giant Netflix (NASDAQ:NFLX). Even with DIS getting into the mix, I'm still optimistic on NFLX because of its powerful original content.Admittedly, though, DIS is taking out Netflix's initial advantage of going first to market with the streaming platform. Moving forward, the two will compete head-to-head mostly on content, which is Disney's strength.Further favoring the Disney stock price is the changing nature of the entertainment consumer. With the mainstreaming of geek culture, most of today's successful movies are science-fiction fare or based on comic books.Of course, this is a huge boost for DIS stock because the underlying firm owns the Star Wars franchise. That is a real license to print money, trade war be damned! And when the hotly anticipated Star Wars: The Rise of Skywalker hits theaters later this year, I expect record-breaking sales. That includes both domestic and Chinese box offices. Disney is America's Corporate AmbassadorIf tensions get worse -- and that's more than likely -- I can see the Chinese boycotting expensive American goods. I don't think it's any coincidence that General Motors (NYSE:GM) and Ford Motor (NYSE:F) suffered sharp declines recently.American car companies are on life support. They're only hanging on because of Chinese demand. Surely, the communist government knows this, and they'll go after GM and Ford. By stabbing Detroit in the jugular, China can hand the U.S. a permanently ignominious defeat.But attacking Disney? I don't see it, primarily because this is the most inoffensive brand ever. For one thing, its content, products, and venues appeal to the widest audience possible. Second, Disney is a very diverse brand. Specifically, they're Asian-friendly, which is somewhat important when you're trying to court Chinese viewers.Lastly, we go back to Bob Iger and his short tenure on the President's business council. After hitting the wall that is Trump's ear canal, which helps funnel verbal cues to the President's brain, Iger quit. But in doing so, he may have endeared himself to the Chinese. As luck would have it, this may turn out to be the best move ever.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post 3 Reasons Why Disney Stock Could Avoid Becoming A Trade War Casualty appeared first on InvestorPlace.
Motley Fool2 days ago
Disney's Hulu Strategy Is Emerging
Maybe Hulu and Disney+ can get along after all.
American City Business Journals2 days ago
Now hiring: Disneyland stormtroopers, must be tall, slender
Disneyland is looking to hire people to play stormtroopers for the new Star Wars: Galaxy’s Edge attraction, but restrictions apply.
American City Business Journals2 days ago
Disney's $200 custom Star Wars lightsabers may still be a steal to diehard fans
This special merchandise will be sold in the new themed land at Disney's Hollywood Studios theme park, which will open Aug. 29 in Orlando.
Business Wire2 days ago
Actress and Host Vanessa Lachey and daughter Brooklyn Kick off Toy Story 4 “Takeover” at Disney Store
Disney store locations around the country transform to give guests an immersive shopping experience in celebration of Disney and Pixar’s Toy Story 4
American City Business Journals3 days ago
Making the cut: Why Orlando can't throw in the towel on sports, despite its riddled history
April 2, 2019, started like any other spring day for members of the fledgling Orlando Apollos football team, as they took the field to practice for their next game, throwing and catching passes, running plays and performing drills. In a prepared joint statement with the general manager and team president, Spurrier later said he was "shocked and incredibly disappointed" by the league's decision and felt grateful to the team's players, coaches, staff, corporate partners and especially the fans, who "fervently supported" the Apollos as Orlando's professional football team. The Orlando Apollos football team, which played its home games at the University of Central Florida's Spectrum Stadium, lasted only eight weeks.
Barrons.com3 days ago
Disney Stock Might Not Get a Boost From Its New ‘Star Wars’ Attractions
Disney’s new Star Wars: Galaxy’s Edge attraction at Disneyland and Disney World will see huge crowds and add incremental revenue, according to Bernstein.
Motley Fool3 days ago
Disney World's Top Rival Is Losing Ground
Disney's theme parks grew slightly faster than Universal Orlando's dry theme parks last year, and the gap is going to widen in 2019.
InvestorPlace3 days ago
3 Smart Trades for a Troubled Market
Another trade war headline delivered another nasty market open. With volatility on the rise and overnight swoons in stock futures now the norm, the environment has turned treacherous for directional traders. If you're seeking the best trades to weather the turmoil, I suggest high-probability option selling plays that allow you to sidestep the chop all together.These strategies create a wide profit range, giving ample room for stocks to shake and bake before delivering losses. Additionally, they profit from the passage of time, relying more on the clock than an accurate directional prediction to deliver the goods. * 6 Stocks to Buy for This Decade's Massive Megatrend In selecting the best stocks for these options trades, I focused on two companies exhibiting relative strength and one Index to game the entire market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's take a closer look. 3 Smart Trades for a Troubled Market: Advanced Micro Devices (AMD)Source: ThinkorSwim Advanced Micro Devices (NASDAQ:AMD) has formed a clear bull flag pattern on its weekly chart during the recent market drama. Buyers continue to emerge every time AMD has tried to break support. Today's drop is perhaps the sole exception, with the stock breaching the 50-day moving average.And yet, the weekly flag pattern is still intact, suggesting the downside should be limited over the coming weeks. To profit, consider selling naked puts such as the July 24 strike. You can sell it for $1.01 to score $101 per contract. You will capture the reward if AMD sits above $24 at expiration.The $24 put's delta is 0.27, so consider your probability of profit 73%.For more confirmation before pulling the trigger, you could wait for AMD stock to break above today's high -- or at least turn its intraday trend higher. Disney (DIS)Ever since scoring a major breakout on the Disney+, which was reveal last month, Disney (NYSE:DIS) has been one of the best stocks for bulls to watch. DIS stock has pulled back from its recent record but is holding steadfast to the 20-day moving average. With its strong underlying fundamentals and positive sentiment, dips have to be viewed as buying opportunities.If you're willing to bet Disney shares stays aloft then sell the July $125/$115 bull put spread for $1.05. The reward is limited to $1.05 and will be captured if DIS is above $125 at expiration. The risk (and cost) is capped at $8.95 and will be lost if the stock falls below $115. * 7 Safe Stocks to Buy for Anxious Investors The delta of the 125 put is 0.2, so the probability of profit is a lofty 80%. Russell 2000 Index (RUT)Source: ThinkorSwim Instead of trying your hand at picking the best stocks, how about a trade on the entire market? Small-caps have underperformed large caps over the past month, driving the Russell 2000 Index (INDEXRUSSELL:RUT) into a downtrend.Today's support break reveals the correction is worsening, and it may be a while before a new uptrend emerges. To capitalize on continued neutral to bearish behavior, you can sell out-of-the-money call spreads.For example, if you're willing to bet RUT remains below 1,600 for the next 56 days, you can sell the July 1,600/1,610 bear call spread for $1.70. The reward is limited to $1.70 and will be captured if the calls expire worthless. The initial cost and total risk if $8.30. To minimize the damage if RUT rises too far, you could exit if it touches 1,600. By risking $8.30 to potentially make $1.70, the spread offers a potential 20% return. And it's easier than trying to pick the best stocks to play individually.As of this writing, Tyler Craig held neutral options positions in RUT and DIS. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 3 Smart Trades for a Troubled Market appeared first on InvestorPlace.
American City Business Journals3 days ago
Channel 7's late news is tops, but Channel 5 surges in May sweeps
NBC owned-and-operated Channel 5 looks to have benefited from a May in which political change was big news in Chicago.
American City Business Journals3 days ago
Action News anchor leaving 6ABC after 31 years
Monica Malpass said she is “looking forward to exploring potential national and international opportunities” and assessing what’s best for her family and career.
InvestorPlace3 days ago
Look for a Mid-Summer Turnaround for Roku Stock
Despite the weakness in the broader markets in May, not all stocks have suffered the same fate. One stock that has been a bright spot is Roku (NASDAQ:ROKU), the largest over-the-top streaming content provider. On May 21, ROKU stock hit an all-time high at $87.65.Source: Shutterstock U.S. consumers are moving from traditional pay TV services to streaming delivery services. And advertisers are following viewers. Therefore I would not bet against Roku shares longer-term.However, there is likely to be some profit-taking in the stock in the next few weeks. Such a decline would potentially offer investors better entry points if they decide to hit the buy button later in the year. With all of that in mind, let's look at what may be next for Roku stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend Where Is ROKU Stock Now?The streaming device platform Roku, which also is the leading connected TV manufacturer in the U.S., became a darling of Wall Street soon after its IPO in 2017. The price of Roku initially went up from an opening price of $15.78 to a high of $77 in just over a year, benefiting from the disruptive internet entertainment revolution that has made viewing more personalized.Then came the selloff in the last quarter of 2018 -- especially in the tech sector -- which was seen as an important signal that investors were no longer willing to be exuberant with technology stocks and their rich valuation numbers. On Dec. 24, Roku saw a 52-week low of $26.30.As Roku released two consecutive strong earnings reports first on Feb. 22 and later on May 8, bullish momentum came back into the stock and the stock kept rewarding the shareholders. Especially after the Q1 earnings released in May, Roku stock soared the next morning as well as the following several trading days. Year-to-date, ROKU stock is up over an eye-popping 170%. Roku's Business Model is EvolvingRoku stock's revenue can be divided into two segments. "Player" which represents sales of its digital media boxes, and "Platform" which includes advertising sales, licensing and other non-hardware revenue sources.In its earlier years, Roku's player segment accounted for about 75%, while its platform segment, which generates revenue mainly through advertising and content partnerships, provided the other 25%.However, these ratios have been changing rapidly. Now the platform segment accounts for the bulk of the company's sales. And Roku's device sales growth is decelerating. The expanding platform business, in return, means that the advertising business is growing.At present, Roku and Hulu, a video streaming service that is majority-owned by Disney (NYSE:DIS), are the market leaders in over-the-top (OTT) advertising. OTT ads are shown on a TV screen through a smart (connected) TV, or streaming device.For example, Roku sells display ads that it shows on its home screen and on its screen saver. The company also offers ads within the videos it streams from particular channels available through the player. ROKU's Impressive GrowthAccording to the earnings result of Feb. 22, in Q4 2018, ROKU's platform revenue, which made up about 45% of total revenue, grew 129% year-over-year (YoY).Then came the earnings release of May 8 which showed a 79% YoY increase in platform revenue to $134.2 million. Now, platform revenue accounts for 65% of total revenue. Roku's accelerating growth has led to a 51% YoY growth in total revenue, which reached $207 million.ROKU stock also reported strong Q1 sales for both Roku TVs and players. More than one in three smart TVs sold in the U.S are Roku TVs. It has indeed taken the lead from Samsung to become the number one selling Smart TV operating system (OS). Roku's OS, which is built specifically for televisions, is also available in Roku streaming boxes.The operating system enables Roku to have a direct relationship with its almost 30 million subscribers, who are increasingly spending more time on the platform.In its quarterly results, ROKU provides guidance on revenue, gross profit, net income, and adjusted EBITDA. In its Q1 2019 earnings, the group impressed investors with guidance on all four metrics that came above expectations for the rest of the year.Adoption of OTT video services will likely increase in double digits both in the U.S and overseas. And Roku management is also looking at international expansion as the next strategic area of growth.The company aims to grow the number of countries it operates in and to add local content to attract international viewers. However, analysts believe that it will be several quarters before Roku firmly establishes relationships with international retailers and manufacturers and successfully markets its products globally. Bulls vs. Bears amid Intensifying CompetitionRoku is a growth stock, but it's also a speculative stock. Long-term ROKU bulls happily highlight many of Roku's competitive advantages, starting with ROKU's first-mover advantage in OTT advertising, share of smart TVs sold in the U.S. and projected annual growth of over 30% in the rapidly expanding over-the-top streaming market.On the opposing side of the coin are the nervous investors and short-sellers who are looking for any excuse to short ROKU stock. They believe that the market is setting itself up for disappointment. Can Roku's future quarters indeed be as bright as investors want to believe?Unlike Netflix (NASDAQ:NFLX), Roku does not generate content. This is another reason why some investors worry that Roku's revenue growth through subscriptions may simply be not enough to justify the rich valuation. The company still operates at a net loss and is burning cash rather fast.ROKU is facing increasing competition on multiple fronts from several tech and media giants. Rivals such as Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Chromecast, Apple's (NASDAQ:AAPL) Apple TV, Amazon's (NASDAQ:AMZN) Fire TV as well as Disney+.Going forward, will Roku be able to not only hold but also gain ground? As these competitors continue to make their mark in the streaming platform landscape, investors may decide to take some money off the table, pressuring the recent price gains.In March, the stock was hit with several downgrades by analysts who voiced concern at stretched valuation levels. If the broader market does not go up as rapidly as it has done over the past few months, then the momentum in high-flying stocks like ROKU would slow down, too.If Roku cannot keep up with the aggressive growth assumptions, then shareholders may become more concerned with low profits as well as its margins and the stock price could easily suffer. In other words, could the market be getting ahead of itself? Short-Term Technical AnalysisAs a result of the impressive 2019 price gains, short-term technical indicators have become over-extended. Investors who pay attention to short-term oscillators should note that ROKU's technical message has also become "overbought."Therefore, in mid-March, following the downgrades, it was not surprising to see a rapid fall of 14% in one day on the headlines.While long-term investors would now like to see Roku go over the $90 level and reach $100, traders may push the price down and keep the range between $60 and $70, possibly until the next earnings repot in Aug. 2019.Thus in case of a broader market decline in the coming weeks, a pullback toward the mid-$60 level might occur in ROKU stock. The Bottom Line on ROKU StockROKU stock is likely to experience volatility in May and June. So investors should not rush to hit the buy button on Roku in the coming weeks. They may want to wait for the release of the next quarterly statement later in the summer to re-evaluate the balance sheet and the fundamentals.In recent months, ROKU stock has given investors a lot to be optimistic about and investors who buy the shares on the dips are likely to be rewarded handsomely within a few years.In the meantime, Roku may also find itself in the middle of a bidding war from the competitors to be acquired. After all it has experienced strong growth since its IPO and has an enviable advertising business that combines mobile with television.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Look for a Mid-Summer Turnaround for Roku Stock appeared first on InvestorPlace.
American City Business Journals3 days ago
ESPN and Fox Sports unveil contrasting strategies as they target the sports gambling market
Over a five-day stretch this month, ESPN and Fox Sports took their biggest steps in the sports gambling space.
InvestorPlace3 days ago
Mere Competition Can’t Disrupt Netflix Stock
In the entertainment world, streaming companies like Netflix (NASDAQ:NFLX) have levered a profound impact. Naturally, Netflix stock has provided long-term stakeholders with much to smile about.Source: via NetflixBut on Sunday night, the program that received the most cheers came not from streaming platforms but from a traditional cable powerhouse. According to The Wall Street Journal, a whopping 19.3 million viewers tuned into watch HBO's Game of Thrones. Due to the buzz surrounding the final episode in the popular series, it was a record-breaking night for HBO.It also gives some food for thought regarding NFLX stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) The AT&T (NYSE:T)-owned HBO truly had a gamechanger in its hands. Although I don't dare to guess where Hollywood executives take this momentum, a logical pathway is a spinoff series. Whatever the ultimate result, should we worry about the Netflix stock price? NFLX Stock Sees More Competent CompetitionHindsight being 20/20, we can clearly identify the two major catalysts for the Netflix stock price: content and platform.Currently, the viewing public's attention focuses mostly on the former, and for good reason. Netflix routinely submits groundbreaking original shows, such as Narcos and the extraordinarily popular Stranger Things. Additionally, they've widened their portfolio to include international titles.But from an investor's perspective, the latter component carries significant importance. How so? Well, let's face facts: going first to market with the streaming platform resulted in easy money in NFLX stock. But fresh competition will now raise that low-hanging fruit by at least a couple yards.Of course, I'm referencing entertainment behemoth Disney (NYSE:DIS) and its Disney+ streaming service. On paper, DIS is a dual threat as it's competing on both platform and highly lucrative content and brands. But with Game of Thrones' runaway success, another factor comes into play: scheduling.CNBC's Sarah Whitten made a compelling argument: Thrones releases its episodes on a weekly basis, which forcibly creates anticipation and tension. But NFLX largely incorporates a binge-watching format: the subscriber chooses how much (or how little) they view in one sitting.Should management then switch to this episodic format to help boost the Netflix stock price? I think the evidence points to yes. On a week-to-week basis, viewership declines significantly under the company's binge-friendly format. But with Thrones, viewership remains robust and consistent.In other words, the data suggests that Netflix has lost some revenue-synergies due to inefficient scheduling. And with NFLX stock going rangebound for most of this year, the company could use a change of pace. No Need to Panic on Netflix StockStill, I don't think a need yet exists to tinker significantly with what brought the Netflix stock price to its present heights.Sure, most people prefer episodic formats as opposed to binge-watching. But according to data from Parrot Analytics, it's a very small majority. Over time, it's conceivable that this trend will shift in favor of binge-watching.I say this because streaming is mostly popular with young Gen-Xers, millennials and of course Gen-Z. They're the ones dictating this new direction in media, and how we generally consume content. Since they're obviously going to be around longer than older generations, I'd put more emphasis on what they think.Furthermore, an inherent risk exists to suddenly change expectations. Netflix is Netflix because it first allowed consumers to binge-watch. Previously, such a concept was either impossible or extremely cumbersome. To take that away cuts into what makes the company and the streaming platform special in the first place.Therefore, management's best decision is to maintain the status quo and focus on original content. Despite the big guns crowding the sector, NFLX stock still has the advantage. Primarily, the underlying company is winning on that critical content game. * 7 Safe Stocks to Buy for Anxious Investors Second, Netflix is a lean and focused organization: they don't have to worry about resorts or integrating a next-generation telecommunications network. Their sole job is to entertain people at a reasonable price. They show no sign in losing strength in this department, which is why I'm not worried about Netflix stock.As of this writing, Josh Enomoto is long AT&T stock. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Mere Competition Canat Disrupt Netflix Stock appeared first on InvestorPlace.
InvestorPlace3 days ago
Historical Valuations Could Hamper Disney Stock Growth
The Walt Disney Company (NYSE:DIS) continues to add to its attractions as it launches Star Wars Galaxy's Edge at its Disneyworld and Disneyland parks. The Parks and Resorts division has long served as Disney's strongest division regarding profit growth. Still, whether that will help Disney stock remains unclear. Over the last few years, the shares fell and then increased based on television, and now, the performance of its streaming services. Given recent historical patterns, streaming, and not theme parks, will continue to drive the DIS stock price.Source: Richard Stephenson via Flickr (Modified)For all of the talk about theme parks, media has long driven Disney shares. The steady increases that defined DIS stock for the first half of the decade came to an abrupt halt in 2015. Customers were dropping both the Disney Channel and ESPN en masse as they turned away from cable and satellite to TV to lower-cost streaming services.Things changed last month when the company announced a launch date for its streaming service, Disney+. But streaming for Disney is shaping up to be more than just Disney+ and ESPN+. The company picked up 10% more of Hulu from AT&T (NYSE:T). That boosted Disney's Hulu stake to 70% and with it came full control of the content and streaming platform per an agreement with co-owner Comcast (NASDAQ:CMCSA), which agreed to sell its 30% stake to Disney in five years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Nobody expects these streaming services to make up for the revenue lost from its declining subs from the Disney Channel and ESPN. In fact, profit estimates have fallen in recent weeks as the prospect of higher content costs weighs on DIS. Analysts now forecast that profits will fall by 7.2% this year and by 2% in 2020. Disney Stock Depends on Multiple ExpansionNonetheless, the challenge that Disney+ poses to Netflix (NASDAQ:NFLX) inspired a one-day 11.5% bump following the announcement. The DIS stock price has retreated modestly since that time. Still, with a Disney stock price of around $134 per share, the forward price-to-earnings (PE) ratio now stands at about 20.That's a problem. The five-year average PE comes in at around 18.8. Over the last 10 years, the average PE ratio on Disney stock has never reached above 22. The consensus price target now stands at $150 per share, with other estimates going as high as $170 per share. Reaching the $150 per share target would take the PE ratio to around 23.That represents an increase of just under 12% from current levels. Hence, traders need only see a modest move higher before Disney stock becomes a bet on multiple expansion.It could happen. At current prices, Netflix trades at just over 100 times forward earnings. And let's not forget about the mere announcement of the Disney+ launch that led to a massive one-day spike in Disney stock.I see this as a reasonable bet for current long-term holders of DIS. Given the success of the theme parks and franchises, profit growth will resume at some point. They have past profits and a higher dividend yield to rely on. However, new buyers face more of a gamble. If they do not get the needed multiple expansion, they might have to wait years before they turn a profit on Disney stock. Bottom Line on Disney StockTheme parks may drive Disney but in recent years, subscriber numbers have driven Disney stock. With the opening of the Star Wars-themed areas, one has to assume the Parks and Resorts division will continue to lead the company in revenue growth. Unfortunately, this has brought little benefit to holders of DIS stock. That trend will likely continue. * 7 Stocks to Buy for Over 20% Upside Potential DIS stagnated for years as cable-cutting led to smaller audiences for both the Disney Channel and ESPN. Now, it recently moved to record highs after the Disney+ announcement.Unfortunately, to move significantly higher, Disney stock will have to do something it has not done in decades -- trade at more than 22x earnings. Streaming media could drive multiple expansion. If it sustains itself above a 23x PE, DIS stock could move much higher. However, if traders balk, new investors could wait years before seeing a profit in DIS.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Historical Valuations Could Hamper Disney Stock Growth appeared first on InvestorPlace.
Motley Fool3 days ago
3 Stocks to Buy and Hold for 20 Years
This streaming pioneer, entertainment powerhouse, and e-commerce titan are built to stand the test of time.
MarketWatch3 days ago
Coming to a VR device near you: interacting with your favorite superheroes
Facebook's latest virtual reality (VR) device, called Oculus Quest, gets good reviews. Apps download straight to the device and WiFi connects users for multiplayer games. Comic book superheroes are notably scarce in VR content, which seems odd because comic book fans are super-passionate about their make-believe worlds.