Walt Disney Company
Mass Media Entertainment Industry Conditions
The mass media and entertainment industry, that Walt Disney Co is a part of, is in decent
standing. Video streaming is growing, and companies are competing for customers. It is expected
that commodities like virtual reality, esports, and 5G are going to arise in this market. Since
virtual reality did not live up to its expectations, companies are revamping and integrating it in
different ways. Sports gambling now becoming legal is providing an opportunity for subscription
service companies to provide sporting events in their packages. It is anticipated that many users
are going to opt for the high-speed and bandwidth of 5G, so companies that provide this high-
performing internet will be more sought after (Deloitte United States, 2020).
Financial Position of Walt Disney (Relative to Industry and Company History)
Walt Disney’s financial position is a little below average standing relative to their industry.
Apple, Amazon, and Tesla’s stock prices are much higher than Walt Disney, but Walt Disney is
ahead of AT&T. Walt Disney’s net income, diluted earnings per share, net profit margin, and
operating income are down, all by around 20% from their value last year, which is not good
(Google Finance, 2020). They badly missed the estimates on earnings by Wall Street and barely
reached the estimated revenue (Foerch, 2020). The reason behind this is due to Covid-19 causing
them shut down their theme parks which lost them significant income, but they are slowly
recovering.
Economic Outlook of Walt Disney
It is expected that Walt Disney will continue to gradually increase in stock price, earnings, and
revenue since they have re-opened their theme parks. Walt Disney’s current stock price is $124.
According to CNN Business (2020), 22 analysts projected a median target of $140 this coming
year which is a 12.89% increase.
Invest or Not Invest
Although it would not be worst company to invest in, Walt Disney would not be the best choice
in investments at this time. According to the projected economic outlook of Walt Disney’s stock
price, an investor would increase their earnings, but not by much. There are other companies that
would provide an investor with a greater return. For example, Netflix has increased their stock
price by 260% over the last three years where Walt Disney’s was only an increase of 18% (Trefis
Team, 2020, para. 1).
References
CNN Business. (2020). DIS - Walt Disney Co forecast - CNNMoney.com. Business News - Latest
Headlines on CNN Business - CNN. https://money.cnn.com/quote/forecast/forecast.html?
symb=DIS#:~:text=Walt%20Disney%20Co%20(NYSE%3ADIS)&text=The%20
Deloitte United States. (2020, May 13). 2020 media and entertainment industry
outlook. https://www2.deloitte.com/us/en/pages/technology-media-and-
telecommunications/articles/media-and-entertainment-industry-outlook-trends.html
Foerch, A. (2020, May 11). Walt Disney Co. San Fernando Valley Business Journal, 25(10), 28.
https://bi-gale-com.ezproxy.liberty.edu/global/article/GALE%7CA626296412?
u=vic_liberty&sid=summon
Google Finance. (2020). DIS - Google
finance. https://www.google.com/finance/quote/DIS:NYSE
Trefis Team. (2020, June 22). Disney or
Netflix? Forbes. https://www.forbes.com/sites/greatspeculations/2020/06/22/disney-
ornetflix/#379f738c84da
Sarah your post about Walt Disney Corporation was very enjoyable to read. Walt Disney
was a great pick because most children dream about going to this place and just to think it was a
little dream of two brothers that evolved so beautifully and remain in great demand throughout
the years. Currently the stock price to purchase a share with Walt Disney is currently $121.54
and has ranged from $79.07 to $153.41 in the past year (NYSE, 2020). I agree that there are
other investments that will be a better choice but compared to other theme parks it is the best.
Universal Studio share $39.90 with the highest at $58.30 only and Sea World with Busch Garden
at $21.28 and highest $36.96 year (NYSE, 2020). Due to Disney making more revenue yearly
the return is greater. For someone who wants to make forward steady money without a huge
return would not be a bad idea. Walt Disney is not only resorts, virtual reality, esports, and 5G
they also have the ESPN Wide World Sports Complex hosting more than 60 live sporting events
as well to contribute to the success (ESPN Wide World of Sports, n.d.). At this current time all
places where people gather are definitely taking a negative hit because of the pandemic, after this
pass if the stocks are not bought at the time when the economy is down when the world fully
open the stocks are going to rise to its max. Normally Disney will have over 150 million people a
year (Hoover, 2020). The world has to trust on the Lord and know that this too shall pass. “If my
people, who are called by my name, will humble themselves and pray and seek my face and turn
from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal
their land” (New International Version, 1973/2011, 2 Chronicles 7:14).
References
ESPN Wide World of Sports (n.d.). The complex exceptional services.
https://www.espnwwos.com/complex/services/
Hoover, G. (2020, August 10). American original Walt Disney: Entrepreneur without peer.
Archbridge Institute. https://www.archbridgeinstitute.org/2020/08/10/walt-disney-
entrepreneur-without-peer/
New International Version. (2011). BibleGateway.com.
https://www.biblegateway.com/passage/?search=2+Chronicles+7%3A14-
15&version=NIV
NYSE. (2020, October 29). Microsoft Corporation. Stock quote. Yahoo! Finance.
https://www.google.com/finance/quote/DIS:NYSE
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