5 Important Developments From Last Week That Could Boost Disney’s Stock
Macroeconomic uncertainty, supply chain issues and runaway inflation have weighed on the stock market in recent months, pushing the S&P500 and the Nasdaq Compound in bearish territory. disney (SAY -1.13%) was not spared amid the carnage: its stock is down 49% from its peak at the end of last year.
Investors looking for reasons to buy Disney in the wake of this fall need look no further than recent headlines, which show a number of promising and high-profile developments from all corners of its vast empire, including theme parks, cruise ships, streaming video, and even the C-suite. These updates suggest the House of Mouse is setting the stage for a remarkable turnaround when markets begin to recover. Here are five recent developments that could help put the magic back in Disney’s stock — and sooner than you think.
1. A once-in-a-lifetime vacation deal is sold out
Disney enthusiasts are an enthusiastic bunch, and the company is always coming up with new ways to cater to its biggest fans. He recently unveiled the Disney Parks Around the World trip, a worldwide vacation extravaganza that has pushed the upper limits of fandom pricing. The 24-day vacation adventure included the jet-setter in six countries and 12 Disney theme parks. These included not only the company’s flagship locations in Florida and California, but also parks in Tokyo, Shanghai, Hong Kong and Paris, with additional stops at the Giza pyramids in Cairo and the Taj Mahal in India.
Prices for this unique vacation package started at $110,000, but that didn’t stop some of Disney’s most ardent fans from buying tickets during the pre-sale period. All 75 tickets sold out even before being offered to the general public.
Given the success of this high-priced venture, Disney no doubt plans to offer similar trips in the future.
2. A Star Wars-themed cocktail that costs…
The maiden voyage of Disney’s new cruise ship, Wish, is scheduled for later this month. The vessel includes a star wars– A themed dining experience called Hyperspace Lounge, based on an establishment featured in Solo: A Star Wars Story. Disney describes the immersive experience as “an adult-only space tour to a galaxy far, far away.”
One of the standout offerings on the lounge menu is a libation inspired by the star wars universe – a cocktail dubbed the “Kaiburr Crystal”. The drink arrives in a droid-inspired cooler, complete with smoke, sound effects and flashing lights. In keeping with the theme of testing the upper limits of fandom price, the drink costs $5,000.
For cruise ship passengers on a budget, the menu includes other dishes at more affordable prices star wars– thematic drinks.
3. Bob Chapek renews his contract
CEO Bob Chapek took over as helm of the famed entertainment company as the pandemic rocked many of its flagship businesses. Despite the closure of theme parks and movie theaters, Chapek has helped position Disney for success. He leaned into his fledgling streaming service, Disney+, which released hits such as The Mandalorian, Wanda Vision, Boba Fett’s Bookand Obi Wan Kenobi.
The effectiveness of his leadership led Disney’s board of directors to vote unanimously to extend his contract for another three years. Although challenges remain, theme parks and film companies are bouncing back and Disney+ continues to impress. As of April 2 — the end of Disney’s second quarter of fiscal 2022 — the streaming service had nearly 138 million subscribers, keeping it on track to hit management’s bold target of 230-260 million. subscribers by 2024.
4. Cut ties with a questionable past
Splash Mountain has been a staple of Disneyland and Disney World for decades, but it’s finally getting a makeover. The redesign will remove references to the controversial 1946 film The song of the south, which includes racist tropes and what Disney describes (referring to other less problematic old films available on Disney+) as “outdated cultural representations”. The upgrades will transform the ride into ‘Tiana’s Bayou Adventure’, featuring characters featured in the 2009 film The princess and the Frog. The revamped attraction will debut in late 2024.
The update will take inspiration from Mardi Gras, the city of New Orleans and the bayous of Louisiana, according to VP of Creative Development Carmen Smith, who called it a “love letter” to New Orleans.
This is an important decision by Disney, and one that is long in coming.
5. The Hocus Pocus 2 the trailer was a big hit
Longtime Disney fans will no doubt know Hocus Pocus, a classic Halloween movie starring the talents of Better Midler, Sarah Jessica Parker and Kathy Najimy. The movie, which debuted in 1993, has remained a perennial holiday favorite, and it’s getting a long-awaited sequel. Just last week, Disney released the first trailer for Hocus Pocus 2which is set to debut on Disney+ in late September, and the reaction from viewers has highlighted the original’s enduring popularity.
The preview generated 43.6 million views in its first 24 hours. To put these numbers into context, the Hocus Pocus 2 the trailer surpassed trailers for hugely popular Disney+ Originals such as Boba Fett’s Book (23 million views), the two seasons of The Mandalorian (35 million views each), and Lucas (28 million).
This suggests that the winning streak enjoyed by Disney+ should continue.
Disney’s track record for finding new and innovative ways to extract revenue from its intellectual property is unmatched.
All the developments mentioned above are part of the undeniable success of Doctor Strange in Multiverse Madnesswhich became the 10th film in the Marvel Cinematic Universe to surpass $400 million in domestic ticket sales, and is currently the second highest-grossing film of 2022.
Given the current situation, challenges remain for Disney and its stock could drop further, at least in the short term. That said, while none of these developments alone mean much, taken together they show that Disney still has plenty of catalysts to drive growth. That makes the stock an unqualified buy now, before Wall Street comes to its senses.