Walt Disney Company Share Price Forecast December 2021 – Time to Buy DIS?
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Shares of American multinational entertainment and media conglomerate Walt Disney Company (NYSE: DIS) are in the green today after closing at $151.05 as of December 21st (19:59 EST). Disney shareholders had high expectations for the shares coming into 2021 as sales began to rebound. But Disney shares have decreased 18% this year.
Walt Disney – Technical Analysis.
Walt Disney’s financial statement indicates that the market cap is $274.557 billion with total assets worth $203.609 billion. Revenue for 2020 was at $67.39 billion compared to $65.13 billion in 2019.
Oscillators such as Relative Strength Index (14)(45.81), Stochastic %K (14, 3, 3)(52.66), Commodity Channel Index (20)(55.04), Average Directional Index (14)(30.44) and Awesome Oscillator(−6.75) are neutral. Moving averages such as Exponential Moving Average (30)(153.93), Simple Moving Average (30)(153.12), Exponential Moving Average (50)(158.48), Simple Moving Average (50)(160.59) and Exponential Moving Average (100)(165.15) are indicating a sell action.
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Recent Developments
The Walt Disney Company is almost synonymous with entertainment and has produced many of the biggest blockbuster films, including many under other studio names. It provides some of the most prized vacation destinations for families through its own 12 global theme parks plus resort areas and cruise lines. It also has many studio franchises that furnish its parks segment and studio arm. In addition to this, Disney also owns three streaming channels that were a huge success under lockdown. These include Disney+ premium content channel launched in November 2019, Hulu, which Disney fully acquired in 2019, and premium sports streaming channel ESPN+.
Disney+ in particular has experienced the most success since its global rollout, accumulating over 95 million paid subscribers. This has also helped Disney shares to increase by 26% in 2020. However, in the 2021 fourth fiscal quarter, ended Oct. 2. Disney+ failed to management’s original goals. Growth is decelerating as Disney+ added only 2.1 million subscribers in the quarter on top of the third-quarter count, for a total of 118.1 million.
Management still believes that the company is on track to meet its overall goals to hit between 230 million and 260 million subscribers by 2024. While Disney+ is slowing down in its existing markets, it still has many geographical markets to enter. It has, till date, launched in 60 countries and plans to launch in 50 more countries by 2022. It expects the total number of countries to be 160 by 2023.
Should You Buy DIS Shares?
At present, Disney shares are trading at 38 times this new fiscal year’s projected earnings and 29 times next year’s bottom-line target. Its theme parks are profitable again, and its Marvel hit factory is responsible for all four of this year’s highest-grossing domestic movies. Investors usually refer to Disney as a forever stock that allows them to hold on to them indefinitely while receiving steady gains. Its opportunities are largely self-generating as it plays such a key role in the global entertainment industry.
Disney is preparing to provide gifts and entertainment packages as the holiday season begins. This will undoubtedly make customers seek out the company for their needs. There are high chances that the shares will be pushed for another stellar comeback quarter.
Some investors may question Disney’s current financial performance as the shares had their biggest dip of the year in November after investors deemed the Disney+ subscriber count disappointing. But buying on this dip may present a good growth opportunity for long-term investors.
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