If you own Disney stock and had been sadly watching it drop in value over the last few months, you can safely open your investing apps and look at the value of the stock now without crying. 😆
EPCOT
In June and for some time after that, Disney stock hit some new LOW values for 2022. These numbers were a far cry from the highs seen in 2021, especially the incredibly high values from March of 2021. But, ahead of Disney’s Q3 earnings call for fiscal year 2022, stock values started to go up. And now it seems like the news Disney presented during the earnings call has encouraged investors to once again believe in the power of the Mouse and the Most Magical Place on Earth.
On August 8th, 2022, we shared that Disney stock had been trading at around $109.11. Again, that was far below the nearly $200 per share value from March of 2021, but was a significant improvement from the $91.84 per share price from July of 2022.
Disney then held its earnings call and released its earnings report for Q3 of fiscal year 2022 on August 10th, 2022. In the report and during that call, Disney shared some BIG updates.
And it looks like stock values have CHANGED as a result. As of August 11th, the stock is trading at around $119.40. But it opened even higher, at around $122, in the morning.
Again, this is nowhere near some of the higher numbers seen even just earlier in 2022, but it’s a big improvement from recent weeks.
So just what news did Disney share that might have caused this increase in confidence in the brand and its products? On the parks and experiences side, Disney reported a $4.3 BILLION increase in revenue compared to the prior year’s quarter. Talk about some monayyy. 💰
Disney noted that this increase in the parks was due to higher volumes (increased attendance, more occupied rooms, and cruise sailings) plus increased guest spending (which comes from things like higher average daily hotel room rates, spending on Genie+, and more).
EPCOT
But there’s more. Disney CEO Bob Chapek made statements about the benefits of the Park Pass system, and we got other statements from Disney executives to indicate that demand for the parks is “resilient and long-lasting.” They even noted how demand is sometimes exceeding the available Park Pass reservations.
Oh, and it turns out about 50% of guests are buying Genie+ too — not a bad figure considering it was around 1/3 of guests previously.
Crowds entering Magic Kingdom
When it comes to Disney+, they revealed that subscribers grew to a total of 152.1 million in Q3. That’s a 14.4 million increase from the last quarter. This was higher than the 147 million total subscriptions some analysts had forecasted, according to CNBC. Exceeding those analyst expectations could have really pushed things to the next level when it comes to Disney’s stock.
Disney also revealed the pricing and release date for their ad-supported Disney+ service, and a price increase for ad-free Disney+. These announcements could also have investors excited about what the future may hold when it comes to potential revenue for the streaming services, especially considering some of the big operating losses the streaming side has seen lately.
©Disney
Of course, stock values could very well change again, especially if the situation with the market, as a whole, changes. But any upward movement is likely good news for the Disney Company. We’ll keep an eye out for more updates and let you know what we find.
In the meantime, you can click here to see whether you should trust Wall Street analysts when it comes to Disney, or click here to see the latest on the contract (and big bonus!) for Disney’s CEO Bob Chapek.
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So much for “go woke, go broke”. It’s obvious that investors are not concerned with Disney’s views and policies.