Name of opportunity: 👀
The Walt Disney Company
Streaming success: 📺
Disney Streaming, as this division of the company is known, has turned a profit for the first time, as the Walt Disney Company’s Q3 results reveal. Disney Streaming is a combined streaming business which includes Disney+, ESPN+ and Hulu. The streaming service has recently seen an increased number of sign ups, with viewers keen to watch the 2015 movie Inside Out as its sequel Inside Out 2 has been performing very well in cinemas.
However, despite this success, there was some bad news for investors in Disney’s Q3 earnings. The company’s domestic parks and experiences division lost 6% operating income, and also missed Wall Street estimates. Disney management has also predicted that fourth quarter earnings report will also show a decline in operating income, dropping in mid single digits compared to the Q4 figure a year before.
How hot is this investment opportunity? 🔥🔥🔥
The Walt Disney Company is still a ‘Buy’ - and overall, analysts believe its stock could increase in value fairly significantly. They think the Walt Disney Company’s stock might increase from $85.49 to $125.00 in the next 12 months. If you invested $1000, you might profit $461.99.
Part of the reason for this prediction is that some analysts believe the poor performance of Disney’s parks division is only temporary - the parks have historically been the company’s steadiest division since the pandemic.
Disney has also announced a new strategy when it comes to film production. The plan is to lower output while focusing on the quality of the movies coming out, to maximise profit and keep audiences coming back to the cinema for more. Most recently Inside Out 2 has, as mentioned, been a massive hit - and Deadpool & Wolverine, which came out at the end of July, is the highest grossing R rated film of all time.
The mouse with the most: 🐭
The Walt Disney Company is a diversified entertainment company that operates in three segments: Entertainment, Sports and Experiences. The Disney mascot Mickey Mouse first appeared in a cartoon nearly 100 years ago in 1929. Since then, the company has expanded to become one of the most well-known businesses in the world, with 225,000 employees and it ranked 87 last year in the Forbes Global 2000.
Which neme?: 🔍
‘Gaming, ‘Travel’ and ‘This Week’s Earnings’
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