Tag: Disney+

Disney is starting to fire on all cylinders now that Covid has subsided. Disney's parks are back in full swing, and movie theaters are springing back to life in this post-pandemic environment. Despite Disney's full business nearly back online, the stock sits near a 52-week low. Disney (DIS) should be in the sweet spot of capitalizing on the pent-up post-pandemic consumer wave of travel and spending at its parks while being the new and preferred content provider via Disney Plus. The former is roaring back while the latter continues to build out content and expand its membership base.

The streaming efforts (Disney Plus, ESPN, and Hulu) have transformed Disney's business model with recurring revenue streams, which will be further bolstered by its legacy businesses now that Covid is diminishing. Taken together, Disney has set itself up to benefit across the board with its streaming initiatives firing on all cylinders while its theme parks are back online and movie theaters have reopened. The company has been posting phenomenal streaming numbers that have negated the negative pandemic impact on its theme parks. However, the streaming-centric narrative is changing as the theme park revenue flows into the company's earnings. Disney presents a very compelling buy for long-term investors as the synergy of its legacy business segments combines with its wildly successful streaming initiatives, all of which have more pricing power down the road to expand margins.

“Hulk Smash” Earnings

Bank of America analyst Jessica Reif Ehrlich noted that the most recent quarterly results were "Hulk smash" and largely driven by Disney+ direct-to-consumer segment, as well as "significantly better" results from its parks, experience, and products business, which generated $2.45 billion, compared to estimates of $1.35 billion. Continue reading "Disney - Full Business Strength Ahead" →

Disney's market capitalization had been eviscerated by over 30%, and the stock price hit an irrational 52-week low in early December. Disney's valuation has been in a tug of war between its legacy business model and its streaming initiatives. Disney should be in the sweet spot of capitalizing on the pent-up post-pandemic consumer wave of travel and spending at its parks while being the new and preferred stay-at-home content provider via Disney+. However, the former has been altered due to uncertainty over the newest omicron coronavirus variant while the latter continues to build out content and expand its membership base.

Disney (DIS) has rolled out a wildly successful array of streaming initiatives that catered to the stay-at-home economy during the pandemic. These streaming efforts have transformed Disney's business model, which its legacy businesses will further bolster as the world economy prospects continue to improve and reopen, albeit minor bumps in the road.

Taken together, Disney has set itself up to benefit across the board with its streaming initiatives firing on all cylinders and theme parks coming back online. The company has been posting phenomenal streaming numbers that have negated the negative pandemic impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company's earnings. As a result, Disney presents a very compelling buy for long-term investors as the synergy of its legacy business segments get back online in conjunction with its wildly successful streaming initiatives, all of which have more pricing power down the road to expand margins. Continue reading "Disney - Irrational 52-Week Low" →

Disney (DIS) has been the sweet spot of capitalizing on the pent-up post-pandemic consumer wave of travel and spending while being the new and preferred stay-at-home content provider via Disney Plus. Over the past couple of years, Disney has rolled out and refined its wildly successful array of streaming initiatives that catered to the stay-at-home economy during the pandemic. These streaming efforts have transformed Disney’s business model, which its legacy businesses will further bolster as the world economy prospects continue to improve and reopen. Taken together, Disney has set itself up to benefit across the board with its streaming initiatives firing on all cylinders and theme parks coming back online. The company has been posting phenomenal streaming numbers that have negated the negative pandemic impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company’s earnings. Due to the tremendous success of Disney Plus, the company is now flexing its pricing power muscle and put through pricing increases on its streaming platform. This pricing power speaks to the value of Disney Plus as a standalone streaming platform while expanding its margins on this new business vertical. Disney presents a compelling buy for long-term investors as its legacy business segments get back online in conjunction with its wildly successful streaming initiatives, all of which have more pricing power down the road.

Pricing Power Flexing

Disney recently pushed through another price increase on its monthly subscription tier for its Hulu offerings. This is on top of price increases that it pushed through on its Disney Plus subscription earlier this year. Clearly, the Disney streaming platforms possess pricing power as the adoption of these steaming properties by consumers becomes more widespread. Part and parcel with these price increases is margin expansion and increased revenue. Disney has forecasted that its Disney Plus streaming platform will have up to 260 million subscribers by 2040. Thus, even marginal price increases will translate into meaningful revenue windfalls for the years to come. Continue reading "Disney - Flexing Its Pricing Power Muscle" →

Disney (DIS) is in the sweet spot to capitalize on the pent-up post-pandemic consumer wave of travel and spending. Disney rolled out its wildly successful array of streaming initiatives that catered to the stay-at-home economy during the pandemic. These streaming efforts have transformed Disney's business model, which will be further bolstered by its legacy businesses as the prospects of the world economy continue to improve and reopen. Taken together, Disney is set to benefit across the board with its streaming initiatives firing on all cylinders and theme parks coming back online. The company has been posting phenomenal streaming numbers that have negated the negative COVID-19 impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company's earnings. As a result, Disney presents a compelling buy for long-term investors as its legacy business segments get back on track in the latter part of 2021 in conjunction with its wildly successful streaming initiatives.

Durable Streaming Revenue and Theme Parks

Disney has forecasted that its Disney+ streaming platform will have up to 260 million subscribers by 2040. Even more, advertising revenue for the upcoming fall television season rose by "double-digits" from the levels of 2019 before the global pandemic, per Bob Chapek. As a result, about 40% of sales during the "upfront" sales period went to streaming or digital ads, Chapek said at Credit Suisse's virtual Communications Conference. Continue reading "Disney - Riding The Post Pandemic Consumer Wave" →

As the economy is on the fast track to reopening with a robust vaccine rollout, Disney (DIS) is set to benefit across the board. Disney’s Parks are set to reopen in stages starting in April, with its Disneyland and California Adventure theme parks slated for April 30th. The theme parks reopening will be a major catalyst for Disney as the company annualizes the COIVD-19 pandemic that shuttered all its properties worldwide. The company has been posting phenomenal streaming numbers that have negated the COVID-19 impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company’s earnings. Disney is a compelling reopening play now that the stock is double digits off its highs. Disney is a buy for long-term investors as its legacy business segments get back on track in the latter part of 2021 in conjunction with its wildly successful streaming initiatives.

Theme Parks and Streaming Synergies

Disney (DIS) expects its Disney+ streaming platform will have up to 260 million subscribers by 2040. The company continues to exceed all expectations in the streaming space accelerated by the stay-at-home COVID-19 environment. Despite the COVID-19 headwinds, Disney’s streaming initiatives have been major growth catalysts for the company. Disney+’ growth in its subscriber base has shifted the conversation from COVID-19 impact on its theme parks to a durable and sustainable recurring revenue model. Continue reading "Disney - A Discounted Reopening Play" →