Then, Disney will really be firing on all cylinders, and its stock is likely to be in a whole new world.Usually, graphic love acts depicted in movies can be too transgressive even though they are often simulated with tricks pillows between themselves, prosthetics and body stockings. Once the pandemic does finally wind down, the floodgates will be open for the parks and cruises business. The company's metaverse ambitions and streaming plans are capable of incredible COVID-resilient growth. It's evolved into a tech company, one that's far more innovative than most investors give it credit for. The Bottom Line on Disney Stockĭisney's not just a movie or amusement park play anymore. The average Disney price target of $204.05 implies 38.6% upside potential.Īnalyst price targets range from a low of $168 per share to a high of $263 per share. Turning to Wall Street, Disney has a Moderate Buy consensus rating, based on 17 Buys and six Holds assigned in the past three months.
Sure, Disney+ is in a bit of a funk, but it's unlikely to last as the company funnels money into content production, catering to a wider range of consumers. Add potential with HULU and ESPN+ into the equation, and it seems like the company can offer a value proposition to consumers that will be hard to match.
All it takes is one incredible smash-hit show or series to reignite growth. Over time, though, I think Disney's version of the metaverse will become impossible to ignore, potentially evolving into a segment that can support growth on par with Disney+.ĭisney+ may have its best growth days behind it, but with plans to bolster content production, it's a mistake to think that the streaming service can't bring the fight with other SVOD (Streaming Video on Demand) companies to the next level. The market may not be so enthused by the metaverse push now, as Omicron variant jitters linger. The company aims to "connect the physical and digital worlds" to allow "storytelling without boundaries." Indeed, CEO Bob Chapek has done a spectacular job introducing technology to evolve the house of mouse amid profound macroeconomic pressures. Arguably, Disney's powerful brands make the company's metaverse push somewhat more favorable than most other companies, including Meta Platforms. Still, the concept of a metaverse may soon go from an abstraction to something we'll quickly grow accustomed to and take for granted, like the smartphones of today.ĭisney has an incredible roster of unbelievable brands and content, which will translate very well as the company pushes into the metaverse. Yes, the metaverse has been a massive buzzword ever since Meta Platforms ( FB) changed its name and growth focus. (See Analysts' Top Stocks on TipRanks) Disney's Metaverse Ambitions Are RealĪs capacity falls for the physical Disneyland or Disneyworld, the company has an opportunity to invest in a digital version in the metaverse. Given the drastic drawdown, underrated growth prospect, and mid-2022 reopening upside potential, I remain incredibly bullish on Disney stock. Still, given another pandemic-fuelled boost to technological innovation, it likely won't be long before investors gain a better appreciation for metaverse prospects. The metaverse appears like a far-fetched money-losing endeavor today. Why? The prospect of a re-acceleration of user growth in the streaming business seems to be heavily discounted.įurther, Disney's metaverse ambitions don't seem to get nearly enough respect, as the company looks to make a push into what could be the new realm of digital technology. Indeed, it's easy to throw in the towel on Disney here, but with nothing but pessimism baked in at around $146 per share, I think the risk/reward looks incredibly attractive. While Omicron will continue weighing on amusement parks and cruises, there remains pent-up demand that will have a chance to be met once a potential Omicron wave is put behind us. I think it's a mistake to think Disney's streaming growth prospects will lag forever. With the first Omicron cases popping up in the U.S., Disney stock seems to be punished as the company was a pure lockdown play, now that the Disney+ hype has died down.
Undoubtedly, Disney is a reopening play, with its amusement businesses at ground zero of COVID-19's impact, but with a high-growth stay-at-home business in Disney+.