From Nasdaq: 2024-05-22 21:45:22

Disney stock (DIS) is currently trading at $103 per share, almost 49% below its high of $202 in March 2021. Factors like slowing subscriber growth in streaming and weak performance in linear TV have contributed to this decline. While Disney’s theme park business has been strong post-Covid, higher expenses and attendance normalization impact its outlook. The stock has shown recovery from October lows, driven by better Q2 results and streaming profit.
DIS stock has had a 40% decline from $180 in early 2021 to $105 now, underperforming the S&P 500 in the past 3 years. The Trefis High Quality Portfolio has outperformed the market each year during this time, indicating better risk-adjusted returns. Uncertain macroeconomic factors like high oil prices and interest rates may affect DIS’s performance in the future.

Inflation shocks since 2020 have impacted the markets, with the S&P 500 declining over 20% at the peak of inflation levels in June 2022. The Fed’s aggressive interest rate hikes led to market volatility. Considering DIS’s historical performance during the 2007-08 financial crisis, there is a mixed outlook on the stock’s potential for gains post-inflation shock recovery.
Disney’s revenues have grown to $89 billion in the last 12 months, with improvements in theme park and streaming businesses driving top-line growth. Despite a net loss in 2020 due to the pandemic, net income rebounded to $2.35 billion by FY’23. With the Fed’s steps to control inflation easing market concerns, Disney stock could see gains once recession fears diminish.

DIS stock had a -7% return in May 2024 and a 14% year-to-date return. Over 2017-24, it has had a total return of -1%. Comparatively, the S&P 500 had a 5% return in May 2024, an 11% YTD return, and a total return of 137% over the same period. Trefis’s Reinforced Value Portfolio also outperformed the S&P 500 with a 7% return in May and YTD, and a total return of 657% since 2016. Consider investing with Trefis Market-Beating Portfolios for potential gains.
Source: https://www.trefis.com/data/companies/DIS



Read more at Nasdaq: Can Disney Stock Double To Pre-Inflation Shock Highs Of Over $200?