The Walt Disney Co. should soon see a revival after Bob Iger returned as CEO; DIS Stock fell by around 8.5% post-earnings but bounced back. Iger held the throne for 15 years and was behind ground-breaking Marvel, Pixar, and Lucasfilm acquisitions. However, his successor Bob Chapek had a lackluster tenure. Can the company regain its lost stature?
Disney (DIS Stock) – Aftereffects of Current Scenarios on Financials
Other than Iger returning to the corner office, the actors union SAG-AFTRA and the group representing major Hollywood Studios are in a rift about contract negotiations. The actors union is asking for an increase in pay and protections around the increasing use of AI in the industry.
The negotiations have been underway since May 7, 2023, with the Alliance of Motion Picture and Television Producers (AMPTP), which represents Walt Disney Co. (DIS.N), Comcast Corp. (CMCSA.O), and Netflix Inc. (NFLX.O), along with other companies. The parleying between the two is underway regarding new contracts. SAG-AFTRA said to go on strike if talks fail to yield by June 30, 2023.
Also, Apple Inc. (NASDAQ: AAPL) recently launched its Augmented Reality (AR) headset Vision Pro at Worldwide Developer Conference (WWDC) on June 5, 2023. Needham analyst Laura Martin argued that the tech giant should acquire Walt Disney to drive the adoption of Vision Pro. However, as of now, the acquisition is just a rumor.
DIS is also planning to expand its Disney+ Content; Avatar: The Way of Water recently released on the OTT platform. As of April 1, 2023, they have 157.8 Million paid subscribers, which is expected to increase.
A strong lineup of upcoming movies including The Litte Mermaid, Indiana Jones and the Dial of Destiny, Boogeyman, Haunted Mansion and Elemental, etc., should bring in big bucks for the company.
At press time, DIS is trading at $92.53 with a slight bounce of 0.01%; the previous close and open were both at $92.52. The 52-week change comes with a drop of 6.91%. With an average volume of 11.44 Million shares, the market cap stays strong at $169.08 Billion. Analysts placed the price target with a 33.3% upside at $123.36.
The last earnings were reported on May 10, 2023, with reported revenue of $21.815 Billion while estimates stood at $21.795 Billion. This brings the surprise to $20.013 Million and a jump of 0.09%. Still, there were a considerable gap-down post-earnings. However, the price is slowly returning.
The trailing twelve-month (ttm) revenue is reported to be $86.98 Billion, and the operating margin in a similar time-lapse increased by 8.56%. Gross profit registered at $28.32 Billion, while the quarterly revenue growth year-over-year (YoY) is up by 13.30%. Total cash in hand at the end of the most recent quarter (mrq) is $10.4 Billion, and debt is $48.52 Billion.
Earnings per Share (EPS) is $2.28, and the P/E ratio is 40.58, ttm.
The Walt Disney Co. (DIS Stock) – Candle Investigation
With the downward trajectory of EMA and RSI of 49.00 in the neutral zone, the current momentum cannot be considered positive. However, the return of Bob Iger and a slew of awaited movies could boost the rally in the long run. For now, if the price crosses immediate resistance and fills the gap, the price could surpass EMA and move toward R1.
Also, if the price drops, it shall bounce from the demand zone and consolidate for some time before deciding on a moving trajectory.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/09/dis-stock-can-the-return-of-bob-iger-and-new-movies-help/