🌟 Disney: Birth of a New Era? 🌟
Disney $DISshare price drops by almost 50 % over the past three years has certainly raised doubts among investors. However, I think we can see clear signs of recovery and potential growth opportunities. 🎢📈
Streaming dominance 📺 Disney+ and the company's other streaming platforms are starting to bear fruit. In the third quarter of 2024, Disney's DTC segment reported (Direct to Consumer) operating profit, a historic milestone. This growth was fueled by higher subscription prices and cost-saving measures.This segment is expected to deliver billions of dollars in annual profits by 2027 , significantly strengthening the company's financial stability.
Traditional media under pressure but still strong 💪Disney' s linear channels (like ABC and ESPN) may be facing a decline in cable subscribers, but operating margins 37 % shows that they are still highly profitable. Despite low growth in this segment, they remain a key part of the company's portfolio.
The future of the parks shines 🏰 Disney plans to invest $60 billion in its theme parks, resorts and cruise shipsover the next decade . These investments are a testament to the company's confidence in continued revenue and profit growth. Although growth was slower in the last quarter, strategic innovations and new attractions will ensure higher profits in the future.
What to expect next? 🔮 According to Wall Street, Disney' s future is rosy. Earnings per share are expected to grow by nearly 90 % and by 2026 by as much as 117 %. While revenues are still under pressure, Disney is in a strong position to outperform the competition.
Although the company faces challenges, strategic investments in streaming and experiences put it in a position to achieve significant growth 🌟.
What is your view of Disney at the moment?
I have $DIS shares in my portfolio. I've been buying fairly high and I'm currently in a loss there, so I'm thinking of diluting and overbought.
I think it's an interesting situation and price action. I wouldn't take it as a retirement investment, but I think some bounce will come, so why not cash in on it😁
With respect to DTC's profitability, I would be interested in the strategy. Let's say that in 10 years most cable will go out of business and people won't want to watch the same movies over and over like they tolerated TV before Netflix. But at the same time, they won't want to watch commercials and ideally have 2-3 stations for a great selection. So how much will this package cost and how good will the content be? Will it be in such a balance that people won't start massively downloading movies via torrents and playing it through a projector? What will the cinema attendance be like in the future to pay for big movies costing hundreds of millions? At what rate can the price of a Disneyland ticket and subsequent service still rise? How resilient will this biz be in an economic cooling? Disney isn't as creative as it used to be and people are behaving unpredictably with entertainment, so how do you predict future revenue?