Disney (NYSE:DIS) has long been a blue-chip stock, cherished by investors for its iconic brand and vast intellectual properties across movies, TV, theme parks, and merchandise. Yet, recent years have challenged the House of Mouse, raising doubts about its 2024 investment appeal.
Parks, Experiences, and Products Business: After enduring pandemic-related closures, Disney’s theme parks are back, poised for a rebound with new rides and experiences set to entice visitors and boost spending. The company anticipates robust income growth, especially at Walt Disney World Resort, driven by higher guest spending.
Streaming Subscriber Growth: Doubling down on streaming, Disney+ continues to expand its library with popular franchises like Star Wars and Marvel. As of Mar 31, 2024, Disney+ had 117.6 million paid subscribers, a promising figure. If Disney can reignite subscriber growth, it could be a significant boost.
Streaming Wars and Box Office Blues: While Disney+ started strong, growth has slowed amid fierce competition. Other streaming giants like Netflix and Amazon Prime Video, along with rising content costs, have intensified the competition. Disney’s film studio has seen hits and misses, with questions arising about the future of traditional movie theaters.
Valuation and Growth: Despite challenges, Disney remains a powerhouse with diverse revenue streams. Its focus on streaming and expansion into emerging markets bode well for future growth. However, trading at a premium and carrying a significant debt load, cautious investors may want to wait for a more favorable entry point.
Disney’s future is nuanced, balancing its enduring appeal with evolving market demands. Investors should weigh these factors carefully before deciding if Disney is worth buying in 2024.
