Disney (New York Stock Exchange:DIS) has released an earnings report that is as bright as a sunny morning. But the magic didn’t last long as Disney gave guidance, and things got so bad that the stock plummeted nearly 10% in afternoon trading Tuesday.
The combined team of Hulu and Disney+ posted a profit for the first time, but ESPN+’s involvement turned it into a loss worth $18 million. Television and box office revenues also declined. So as Americans continue to cut their cable TV lines in favor of various streaming alternatives, and that weighs on Disney’s outlook, it’s likely Disney will bring today’s great shows to some kind of encyclopedia next quarter. It seemed doubtful whether it would be possible to follow up.
It’s a streaming world after all
For those who believed streaming would be the future of media, for better or worse, you’re almost right here. The combination of Disney+ and Hulu is profitable, decreasing linearly, and streaming growth is likely to continue, making streaming highly desirable to a growing number of American viewers. is clear. Disney itself aims for streaming to become profitable in the fourth quarter and ultimately “become even more profitable in fiscal year 2025 and a meaningful future growth driver for the company.”
What is the future price of Disney stock?
Turning to Wall Street, analysts are bullish on DIS stock based on 24 buys, 3 holds, and 1 sells assigned over the past three months, as shown in the chart below. We give it a “Strong Buy” consensus rating. DIS’s average price target of $128.93 per share means it has an upside potential of 22.56%, after the stock has gained 2.14% over the past year.
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