Barclays Downgrades Disney Stock

[DLgal]

Did anyone commenting here actually read the article and understand why the stock was downgraded? The comments here indicate that no one did...

 

[pigletto]

Did anyone commenting here actually read the article and understand why the stock was downgraded? The comments here indicate that no one did...

I responded to a post with my opinion on whether or not pent up travel demand was over. I wasn’t discussing the content in the article. The post grabbed my attention and I discussed what was in that particular post. It’s truly not uncommon for a thread to branch off into other discussion.

 

[ChipnDale79]

Did anyone commenting here actually read the article and understand why the stock was downgraded? The comments here indicate that no one did...

yup sure did.

 

[circus4u]

Disney Stock Price Predictions: Where Will DIS Stock Go After a Historic Downgrade? (msn.com)

 

[hhisc16]

Time to buy the dip?

 

[Mousey0324]

So much for Disney making financial decisions to increase profitability and increase stock price

there stock has been a dog in this bull market run. It’s sad that it performs so poorly at the expense of there customers.

Up until this point it has gotten them no where

 

[hhisc16]

So much for Disney making financial decisions to increase profitability and increase stock price

there stock has been a dog in this bull market run. It’s sad that it performs so poorly at the expense of there customers.

Up until this point it has gotten them no where

Sad to see the stock drop this much today after yesterday's news.
I still wish Wall Street would look at the entire company instead of Disney+ only.
My portfolio took a hit as a new DIS stock owner...
https://www.fool.com/investing/2021/11/11/when-will-disney-stock-be-about-more-than-just-dis/

 

[hhisc16]

double post mistake...

 

[middlechild]

There are so many facets to the Disney stock price. Will the Star Wars category come back? Hollywood Reporter is claiming Rogue Squadron has been delayed. Could this be the end of Kathleen Kennedy, will Chapek reach down into films and cancel her contract? Will ESPN get out from under long term professional TV deals, and what impact does college athletes now getting endorsement deals mean for college TV contracts? Is Disney+ suffering from subscription burnout, as thousands of Verizon customers have to switch to paying for it? Will parks ever escape from Covid restrictions, and in what shape? What impact on DVC from season pass changes? New employment contracts with unions and changes to minimum wages in many markets? Overseas political changes, like China now demanding new standards in portrayals of Asian content? Chase revenue via international markets at the risk of betraying US movie goers? What impact cruise lines had on the results this quarter, and will they return to "normal" with the easing of international Covid measures? How do you balance the growing laisse-faire attitude by some vis-à-vis Covid versus elected officials? Chapek had / has a vision, in this market there has not been enough time to see all he will bring.

 

[RamblingMad]

I am interested as to why the DIS stock is always focused on Disney+?
Disney owns so many companies that Disney+ is only a portion of the overall big picture of the company.

It's where their future growth is coming from. The rest is legacy businesses that can't grow as much. DCL can only add so many cruise ships and raise prices only so high. Parks can only raise the price of their admission so much. Their movies are still recovering as everyone hasn't returned to the theatre.

The problem with Disney+ is that they're super slow to release content.

 

[TiggerBouncy]

Sounds like a good opportunity to buy more DIS.

That's what I took it as. I am still kicking myself for not buying more when it dipped to around $90. This is no where near as great a deal, but it's still a good opportunity and one I choose not to miss.

My portfolio took a hit as a new DIS stock owner...

Don't give up faith, new investor! The stock market is always rife with hills and valleys and is so darned unpredictable. It always cracks me up that a company can make 18.5 Billion dollars, but the stock will crash because some analyst decided they wanted it to make 18.8 Billion instead. Disney+ cracks me up too. They have 118.1 million and wall street wanted 119.6. But they miss sight of the fact that as a new streaming platform, Disney was always working toward 230 million by end of 2024. They are STILL ON TRACK for that number. In fact, they were ahead of track because of covid - wall street it just mad they are not MORE ahead of track.

In any event, DIS may be dipped for a few more months, but it will bounce back by summer if not earlier. If you were looking for a quick fix, you won't get it at DIS, but long term, it's still a strong stock.

It's where their future growth is coming from. The rest is legacy businesses that can't grow as much. DCL can only add so many cruise ships and raise prices only so high. Parks can only raise the price of their admission so much. Their movies are still recovering as everyone hasn't returned to the theatre.

I don't know that I agree with that. First off, DCL has quite a distance it can go. They are one of the smallest of the major cruise lines.

Next, Disney has an all new concept to play with - hotel experiences (the Halcyon). They can make new storylines for that all the time if they want. Or Imagine a hotel based around Indiana. Or an underwater facility. Or a moon base. Imagine the fun you can have with this concept. Such hotels could be built and run anywhere - regional destinations to reduce the travel.

Parks are at their lowest right now and have a lot of leg room. Plus with the advent of premium experiences like they did with Savi's - they can potentially add some really cool stuff that would open people's wallets wider.

Movies will come back. They are starting too already. Disney has a couple of premium releases in the theatres and they are starting to see some warm-up happening with the latest batch.

And I wouldn't count out ESPN, ABC, FOX, National Geographic or the other big hitter subsidiaries yet. Then, they still have dormant companies like Touchstone with a ton of IP that they can ramp back up if they want. Then you have a mass of smaller direct to consumer things like Sphero. And that who other arm that steamboat invests in like GoPro, Photobucket and a smattering of other emerging tech.

Plus, I have a feeling that teamup with Amazon on Alexa is the beginning of a bigger venture between the two behemoths.

Nope.... Disney has a LOT of runway left in many of it's business segment. Believing that all of their future growth is in Disney+, or even the streaming services as a whole is very short-sighted.

 

[Marek Zyskowski]

I follow this financial stuff rather closely. Subscription growth will bump each time Disney+ enters new markets or modify their offerings. I think analysts will need a few more quarters to grasp this. The growth curve for clients will look more up and down than simply up. More importantly, I think Disney will generate a higher margin than a company like Netflix.

 

[TiggerBouncy]

I follow this financial stuff rather closely. Subscription growth will bump each time Disney+ enters new markets or modify their offerings. I think analysts will need a few more quarters to grasp this. The growth curve for clients will look more up and down than simply up. More importantly, I think Disney will generate a higher margin than a company like Netflix.

There is a HUGE influx of IP coming to Disney+ around spring / summer of '22. They said that the pandemic really hampered their ability to create the new content they have planned. I believe that.

As you say, subscription services are a bit of a different animal and the analysists have not figured out how it all works yet - but I think you are right. The numbers will flux a lot more than they anticipate as people let it drop during times of no new content then re-add it when new stuff is added.

 

[DisneyMom_13]

There is a HUGE influx of IP coming to Disney+ around spring / summer of '22. They said that the pandemic really hampered their ability to create the new content they have planned. I believe that.

As you say, subscription services are a bit of a different animal and the analysists have not figured out how it all works yet - but I think you are right. The numbers will flux a lot more than they anticipate as people let it drop during times of no new content then re-add it when new stuff is added.

I know I tend to drop and renew different subscriptions all the time. Get for a month or two catch up and drop and then add another one, it’s just too much to have all at once.

 

[Durski]

ouch

 

[ChipnDale79]

There is a HUGE influx of IP coming to Disney+ around spring / summer of '22. They said that the pandemic really hampered their ability to create the new content they have planned. I believe that.

As you say, subscription services are a bit of a different animal and the analysists have not figured out how it all works yet - but I think you are right. The numbers will flux a lot more than they anticipate as people let it drop during times of no new content then re-add it when new stuff is added.

I honestly need it to be more than the Disney Channel. And i know it is, but I need some more adult programming, i'm not talking R rated things, but more things that arent geared towards kids. I get it, there some things, but i feel like its a very small amount.

 

[chicagodisneyguy]

I honestly need it to be more than the Disney Channel. And i know it is, but I need some more adult programming, i'm not talking R rated things, but more things that arent geared towards kids. I get it, there some things, but i feel like its a very small amount.

Agreed. Right now there is some debate at the top on whether to add their adult content to Disney+. Iger i guess has been opposed and Chapek want to add it. I think to keep subscription numbers increasing they need to add more adult content. That will be the driver to stock appreciation near the highs. I think the parks will continue to preform, but Wallstreet wants streaming growth.

 

[hhisc16]

I honestly need it to be more than the Disney Channel. And i know it is, but I need some more adult programming, i'm not talking R rated things, but more things that arent geared towards kids. I get it, there some things, but i feel like its a very small amount.

https://www.fool.com/investing/2021/11/19/disney-taking-biggest-risk-in-98-year-history/

 

[BrianL]

https://www.fool.com/investing/2021/11/19/disney-taking-biggest-risk-in-98-year-history/

I think they should add something like STAR, where it's an add on and accessible through the same app, but very clearly dileneated as something different. They could put a lot of the 20th Century movies on that.

 

[ChipnDale79]

https://www.fool.com/investing/2021/11/19/disney-taking-biggest-risk-in-98-year-history/

I understand not wanting it to be too edgy, but thats an easy fix. We already have different profiles setup on the account, i believe there is a kid setting for kids profiles, keep the "edgy stuff off of that".

Again, i'm not talking R rated stuff, just maybe some more shows where the lead character isnt a kid.