Will ‘Star Wars’ Hype Boost Disney (DIS) Stock?

1 Dec 2015 | Author: | No comments yet »

Disney’s ‘Star Wars’ Attracts Investors in Midst of ESPN Woes.

Three months after Walt Disney boss Bob Iger warned that ESPN had lost “some” subscribers recently, we now know how much damage on-demand streaming has done to Disney’s powerhouse sports network. Walt Disney Co (NYSE:DIS)‘s stock had its “buy” rating reissued by analysts at Nomura in a note issued to investors on Monday, Analyst Ratings Net reports.

The number of ESPN subscribers is now back where it was 10 years ago, after the network shed 3 million customers in its fiscal year ended Oct. 3, according to a released after markets closed Wednesday. To put it in perspective: With ESPN now at 92 million subscribers, there are more people watching other Disney networks, including the History Channel, Lifetime and A&E, than the once-dominant sports net, which has been the mainstay of Disney’s cable offerings for years. In 2013, ESPN was approaching 100 million subscribers. joins it rivals in struggling against the trend toward media streaming that has battered media stocks for the past year. In taking a look at the current valuation of Walt Disney Company (The) Commo, the price/earnings ratio, commonly referred to as the P/E ratio, is a standard method for comparing stocks based on their relative expense.

Alibaba Group Holding Limited (BABA) is currently at $82.09, has a market cap of 204,301.23 and is trading at a volume of 17,147,528 shares with a weekly performance of 4.51%. Taking a step further, investors can take into consideration growth of the company’s earnings by looking at its PEG ratio, or the Price/Earnings Growth ratio.

Now looking at where research analysts believe the stock is headed, brokerage firms have put a $121.388 one year average price target on the stock. 18 analysts polled by Zacks Research were taking into consideration to arrive at this number. The most bullish analyst on the street has a lofty price target of $140, while the most bearish sees the stock going to $98 in that same one year timeframe.

And despite its troubles with ESPN, the Burbank, California-based entertainment behemoth is expected to draw $200 million on the opening weekend for the widely anticipated “Star Wars: Episode VII – The Force Awakens.” Opening- weekend revenue from the latest installment in the sci-fi film franchise, which opens Dec. 18, will nearly match the $216 million Disney has lost from ESPN ditchers over a 12-month period. Vipshop Holdings Limited (VIPS)’s monthly performance stands at -18.23% with an analyst rating of 2.00 Netflix, Inc. (NFLX) of the Services sector has changed by -1.43% (moving -1.98% since opening) so far today. As a result, Zacks offers an analyst brokerage rating (ABR) which simplifies the recommendations into a 1 to 5 sliding scale where one represents a Strong Buy and 5 indicates a Strong Sell.

Analysts say the takeaway is clear: Investors care about subscriber attrition at ESPN, part of a cable unit that provided about 45 percent of Disney’s operating income in fiscal 2015. But they care more, for now, about Walt Disney Studios, which will restart the “Star Wars” movie series on Dec. 18 after a decade of theatrical dormancy. Disney plans a “Star Wars”-related film once a year through 2020, roughly when “Star Wars” theme park attractions are expected to open in Florida and California. “You would not believe the level of Wall Street fixation on ‘Star Wars’ right now,” Michael Nathanson, an analyst at MoffettNathanson, said by phone on Friday, echoing other Disney analysts. Tim Nollen of Macquarie Securities has estimated that mountains of related merchandise could generate an additional $5 billion in revenue over the next year. Bernstein, wrote in a research note on Nov. 18. “Now the single most frequent question we get regarding Disney is, ‘What’s in your model for “Star Wars”?’ ” In retrospect, analysts say, Disney seems to have been remarkably prescient in preparing for a slowdown at its still-formidable cable division, spending $15.5 billion over the last decade to buy Pixar Animation Studios, Marvel Entertainment and Lucasfilm, the studio behind “Star Wars.” As subscriber erosion, a wobbly advertising market and soaring sports rights costs have combined to slow ESPN growth, Disney — to a greater degree than its rivals — has added backup engines, Mr.

Media Networks comprise an array of broadcast, cable, radio, publishing and digital businesses across two divisions – the Disney/ABC Television Group and ESPN Inc. Stratospheric ticket sales for “Avengers: Age of Ultron,” produced by Marvel, and Pixar’s “Inside Out” were the primary drivers; the studio also receives a portion of profits from movie-themed merchandise. Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts.. The company is counting on “Star Wars” to buoy its stock price while it also tries to tamp down expectations for the film with investors and the news media.

The expectations game is one reason that relying on content for growth is tricky: Unlike cable subscriber fees, which rise at contractually stipulated percentages and times, a movie’s value can only be guessed at in advance. “In December, it’s rare to see a big debut,” Alan F. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law.

Disney also noted that only 18 percent of students will be out of school on the film’s opening day and emphasized that the film’s entire run should be the measuring stick. Still, many box-office analysts expect “The Force Awakens,” which has already generated more than $50 million in advance ticket sales, to deliver the biggest opening weekend in Hollywood history — never mind December. The record-holder is Universal’s “Jurassic World,” which took in $208.8 million over its first three days in June, according to Rentrak, which compiles box-office data.

Ask Disney executives that question and prepare for a response akin to Darth Vader’s famous line from the first “Star Wars” movie: “I find your lack of faith disturbing.” But on the last earnings call, Thomas O. Disney has a parade of probable box-office behemoths in the pipeline for next year, including Marvel’s “Captain America: Civil War,” Pixar’s “Finding Dory,” the sequel “Alice Through the Looking Glass” and “Rogue One: A Star Wars Story.” Movies, in other words, could continue to carry the day at the world’s largest entertainment company.

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