Disney Stock Forecast: Bob Iger is back

Disney Stock Forecast: Bob Iger is back

Disney Stock Forecast for the next 12 months is reduced lower to $120.


Latest Disney Stock Price

Disney Stock Forecast: Latest News

Bob Chapek was Fired and Bob Iger is back

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  • Disney shares fell by 13% after it announced its quarterly results recently where the company reported increased revenues of 9% but $1.3 B less compared to the analysts’ expectations. Operating income also fell short of analysts’ target of $2.05B to $1.6B. Sales also fell short of analysts’ expectations by around $1 billion. The stock plunged by 13% after the results. Parks business did not perform well as expected.
  • CEO Chapek projected that Disney will be profitable in 2024 due to various initiatives such as the new ad-supported version and an increase in subscription prices. Also, analysts are expecting that the profitability in the next year is going to be terrible compared to the expectations.
  • Disney is increasing prices: Disney is ready to introduce an ad-supported version of Disney+ on December 8th in the U.S. The basic tier plan is priced at $8 per month and its ad-free version will be priced at $11. This is expected to improve the company’s profitability by 2024.
  • Disney+, the company’s flagship streaming service, added more subscribers than Wall Street anticipated, according to Walt Disney Co., but investment costs caused quarterly profitability to fall short of analysts’ expectations.
  • As traditional TV viewing diminishes in popularity, the entertainment industry is investing billions to compete with Netflix Inc. and other streaming television providers for viewers. In the fiscal fourth quarter, Disney+ announced 164.2 million members, above Factset’s prediction of 161 million.
  • Disney’s direct-to-consumer unit suffered a $1.5 billion loss due to the cost of building its streaming business, which had a negative impact on quarterly profitability.

Disney Stock Forecast: Q4 Results

  • The company’s total revenues were declared as $20.15 billion, up 8.7% Y-o-Y.
  • Its gross profit was $542 million, down 91.2% Y-o-Y.
  • The company’s operating income increased by 1.9% over a year and was reported as $542 million.
  • Its net income was $162 million, up 1.9% Y-o-Y.
  • Revenue per share was $11.05, up 8.4% Y-o-Y.
  • Diluted earnings per share (EPS) were declared as $0.09, up 1.6% Y-o-Y.
  • Its EBIT was declared as $542 million, 1.9% Y-o-Y.

Pic Source: Economy App

Disney Stock Forecast: Technical Analysis

Looking at the daily charts of Disney, we can see that it has been in a downward trend since September 2021 and it has not been able to break that trend to date. This has brought this stock down to its lower demand zones where it has continued to make lower lows and lower highs. Its demand zone lies between $80 to $90. Sellers can enter Disney after the break of these zones and can get good profits. The reaction to the Q4 profits of Disney has not been that good which is a worrying sign for the stock as it has broken another structure at $90. The $80 level becomes very crucial for Disney now as anything below it can cause a major downfall in the stock. The volumes at these prices have also indicated major interest of investors for Disney at these prices which means anything below it would convert this zone into a huge supply zone for Disney.

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Disney Stock Forecast 2022: Price Target for the next 12 months

Overall$120
Barclays$98
UBS$122
JP Morgan$135
Keybanc$119
Wells Fargo$125

Disney Stock Forecast Today

Overall OutlookPartially Negative
1. Market's WisdomNegative
1a. Market DataPartially Negative
1b. Technical RecommendationSell
2. Crowd's WisdomPartially Negative
2a. Social Media BuzzLower
2b. Social Media SentimentHigher

Read: NIO Stock Forecast

-Vineet Agarwal

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.

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