Valued at a market cap of $205.7 billion, Burbank, California-based The Walt Disney Company (DIS) is a global entertainment powerhouse with operations spanning film, television, streaming, publishing, and theme parks. It produces and distributes content through well-known brands such as Disney, Pixar, Marvel, Lucasfilm, National Geographic, and ESPN.
Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Walt Disney Solutions fits this criterion perfectly. The company also operates popular direct-to-consumer streaming services, including Disney+ and Hulu, alongside its extensive theme parks and resort experiences worldwide.
However, the entertainment company has fallen 7.7% from its 52-week high of $123.74, recorded in March last year. Walt Disney shares have declined nearly 2% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 3.7% dip during the same period.
In the long term, DIS stock has gained 2.5% on a YTD basis, outpacing NASX's 2.9% decrease over the same period. However, Walt Disney has risen nearly 2% over the past 52 weeks, lagging behind NASX's 15.2% gain.
Yet, DIS has been trading above its 50-day moving average since mid-September last year despite recent fluctuations.
Disney reported fiscal Q1 2025 results on Feb. 5 that beat expectations, with adjusted EPS of $1.76 and revenue of $24.7 billion. The Direct-to-Consumer segment turned profitable for the first time, with Hulu adding 1.6 million subscribers and ESPN’s advertising revenue boosting sports segment operating income to $247 million. Operating income grew 31% year-over-year to $5.1 billion, driven by streaming profitability and a rebound in content licensing, which surged from a loss to $312 million due to successful film releases.
However, in contrast, rival Netflix, Inc. (NFLX) has outperformed Walt Disney. Netflix shares have climbed 59.9% over the past 52 weeks and an 11.1% YTD rise.
Despite DIS' underperformance over the past year, analysts remain moderately optimistic about its prospects. Among the 30 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $128.92.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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