Disney Stock Price – DIS Price Chart, History and Forecast
Walt Disney, together with its subsidiaries, is the media giant behind some major entertainment properties, including ESPN, Lucasfilm, Pixar, ABC, Marvel, some of the world's most-visited theme parks and key Fox assets. And after being closed due to the covid-19 pandemic, all of Walt Disney's theme parks are now open, Disney+ keeps attracting new subscribers, and some of the most profitable Disney cruises have resumed. All this makes it the perfect time to analyze the Disney stock price and see whether DIS shares are a buy.
Disney Stock Price Chart Today
Disney Stock Price History
Although past stock performance isn't a guarantee of future performance, a stock's long term past performance can indicate a sustainable competitive advantage, as well as how successful the company’s management has been at exploiting said advantages. That's why this section on Disney stock price history is essential.
Disney Stock Price Historical Trends 1940-2000
In 1940, the Disney Company made shares available to the public for the first time. Until that point, the firm had exactly four owners, namely Edna Disney, Roy O. Disney, Lillian Disney, and Walt Disney.
Disney's first offering was 600,000 common stock shares at $5 per share and 155,000 preferred shares at $25 per share. Even though the threat of war was looming and the United States was at the tail end of the Great Depression, all shares sold out on the first day! Disney needed the $9 million it raised to pay for its new Burbank studio and boost its other operations.
Nonetheless, note that at that time, Disney's common stocks only traded OTC (over the counter), and it wasn't until 1957 that the company held its IPO on the New York Stock Exchange. During the IPO, each share went for $13.88, which is equivalent to $0.03 when adjusted for all subsequent stock splits.
After its IPO, the Disney Empire greatly expanded, with notable events happening, like the opening of Disney World in 1966. This sent the stock price of Disney beyond the $0.20 psychological mark. Decades later, in 1995, Disney acquired ABC TV, which includes the sports cable network ESPN. This pushed the stock price of Disney to a new high of $21.13 as started a 5-year astronomical Bull Run.
Disney Stock Price Historical Trends 2001-Today
When the dot-com bubble burst in 2000, Disney stock lost an overwhelming 67% of its value in the 22 months, from the beginning of the crash to August 2002. Even though the overall market was down, Disney was, without a doubt, one of the hardest hit, as the S&P "only" lost about 36% of its value in the same period. From a high of $43.28 before the bubble burst, the Disney stock bottomed out at $13.
The stock price Disney fell again during the 2008 subprime crisis. This time, its 57% decline to $18.60 until March 2009 closely mirrored the overall market's decline. But just like in the early 2000s, Disney stock came roaring back and accelerated to its 2020 $183 high.
Disney Stock Price Splits
Disney has split its stock 6 times since its IPO. Its first split took place in November 1967, and was a 2 for 1 split. This implied that for each share of Disney stock owned before the split, a shareholder now owned 2 shares. For example, a 1000 share position pre-split became a 2000 share position.
Here is a list of the five subsequent Disney stock price splits
- The second split took place on March 01, 1971, and was a 2 for 1 split
- The third split took place on January 16, 1973, and was a 2 for 1 split
- The fourth split took place on March 06, 1986, and was a 4 for 1 split
- The fifth split took place on May 18, 1992, and was a 4 for 1 split
- The sixth split took place on July 10, 1998, and was a 3 for 1 split
Note that splitting a stock does not change the company's valuation. It simply cuts individual shares into cheaper, smaller pieces that are easier to purchase for retail investors. That's the same reason Disney gave every time it split its stock.
If you're a long-term investor, note that while stock splits might generate more volume for short-term speculators and day traders, they mostly have minor impacts on long-term price growth.
Disney Stock Price Forecast and Predictions
What can we expect from the Disney stock price in the future? To answer this, let’s look at some DIS share price predictions.
Disney Stock Price Analyst Consensus: Buy, Hold or Sell?
According to the Wall Street Journal, the average analysts' stock rating for Disney stock is a Strong Buy. Out of 29 Wall Street Analysts, 23 voted Buy, 6 voted hold, and 0 voted sell.
Disney Stock Price Targets
Wait for the current Disney stock price to break past the $180 psychological level, as that will be a powerful indication of Disney stock's bullish potential.
Disney Stock Price Predictions in 1, 2, 5, & 10 years
According to AI Pickup, 12 Wall Street analysts offering the Walt Disney stock price forecast have a 2021 average price target of $173, with a high forecast of $174 and a low forecast of $173. For 2022, 2025, and 2030 the analysts' average price targets are $179, $288, and $400, respectively.
Coin Price Forecast's predictions were slightly more bullish, with the end of 2021 forecast at $176 and the end of 2022 prediction at $191. The estimates for 2025 and 2030 are $266 and $410, respectively.
How Can I Buy DIS Stock Today?
If you believe that Disney will keep converting its market share into profits, there are several ways to buy the company's stock. But the easiest way to get started it to open an account with a reputable, regulated brokerage platform, such as ZFX.
ZFX meets the needs of both beginner investors and active traders with its quality trading platform, free educational materials, free analytical tools, a demo account and a wide selection of financial instruments you can invest in.
Investing in Disney: Tutorial
This section of the guide boasts the step-by-step guide you can use to register an account with ZFX. But first, note that you'll execute all trades on the platform using MetaTrader 4. MetaTrader 4, or as traders call it, MT4, is a state-of-the-art trading software used by many brokerages and traders worldwide.
Some of the reasons people prefer MT4 over all other trading software include its analysis tools, ability to customize, fast executions, ample opportunities for traders of all skill levels, a wide array of financial markets, and fast mobility.
Step 1: Register with ZFX
First, go to the ZFX website and click the "Open an account" button at the top of the page to launch the registration process.
A registration form should appear, asking you to type in your personal details, including your names, phone number, email address, and preferred password.
To finish the registration process, hit the "Sign up Now" button.
Step 2: Account Verification
ID and address verification are important steps for brokerage firms, as they not only help combat fraudsters but they also allow brokerage firms to fulfill record-keeping requirements by government authorities. That’s why ZFX will require you to submit you government issued ID photo and utility bill or bank statement before you can access all of the platform’s features.
Step 3: Make Your First Deposit
After completing the registration and verification process, you'll need to fund your account with the amount you'd like to invest in the Disney stock.
Step 4: Invest in Disney Stock at Current Price
You're now an investor and can feel free to invest in Disney stock whenever you like! To do so, download and install the MT4 platform using the link on top of the page, as shown in the image above. After installing it on your device, log in using the details ZFX sent to your email and find Disney stock under the symbol DIS.
To Buy or Not to Buy Disney Stock?
Here are several reasons Disney stock could be a buy today.
1. Valuation is misleading
When you take a look at Disney's fundamentals and learn that the share price is trading at a whopping 280 P/E ratio, you may be inclined to believe that the stock is overwhelmingly overvalued at the moment. After all, a blue-chip stock with multiples that can match high-growth software stocks isn't something we encounter every day.
That said, that valuation is highly misleading since it trails earnings during what is, without question, the rock bottom for Disney's business history. As the Covid-19 pandemic ravaged economies worldwide, movie theaters that would show the company's films became ghost towns, advertising buyers significantly cut back on their spending, and most of Disney's parks had no choice but to shut down.
Lately, Disney has been showing signs that negative impacts from all scenarios listed above are quickly diminishing, and look no further than the firm's Q3 FY21 results for proof.
2. The company made an astounding pivot to a direct-to-consumer business model
Disney couldn't have rolled out its Disney+ streaming platform at a more perfect time. The company launched the direct-to-consumer business back in November of 2019, right before the 2020 pandemic that trapped most of us in our homes with not much to do. Since coming to the market, the streaming service has gained lots of traction and is one of the main reasons every investor should consider including Disney shares in their portfolio at this time.
Other intriguing long-term growth drivers that perfectly reflect how Disney is taking advantage of changes in consumer preferences include ESPN+, Hulu, and Hotstar.
"… Our direct-to-consumer business is performing very well with a total of nearly 174 million subscriptions across Disney+, ESPN+, and Hulu at the end of the quarter, and a host of new content coming to the platform," noted Disney CEO Bob Chapek in a press release.
3. Disney keeps releasing high performing blockbusters
Walt Disney surprised investors mid-2021 when it released the revenues generates by Black Widow's debut. Indeed, after delays caused by the pandemic, the Marvel Studio's movie made $78 million internationally and $80 million at the domestic box. To date, the movie has grossed $379 million worldwide, and that doesn't include the $125 million Disney made from releasing the film as a premier access title on Disney+. That takes Black Widow's total gross above the $500 million benchmarks.
Black Widow's astounding opening performance comes after Disney's successful launch of The Falcon and The Winter Soldier, WandaVision, and Loki. Disney released all three shows as exclusives on Disney+, and according to the firm's recent press release, "Marvel fans have streamed nearly 3 billion hours of content on the streaming service to date." Disney thus truly owns a gold mine it can mine for decades and turn out even more $1 billion blockbusters along the way.
Things to Know About the Disney Stock Price Before You Invest
1. Stay on top of news and events that can affect the Disney stock
To ensure the ever-evolving market never takes you by surprise, you'll have to maintain access to the latest events, analyses, trends, and news that can impact Disney stock price. This includes not only news linked to Disney, but also linked to the entertainment industry as a whole.
2. Understand the fundamentals of the Disney stock price
You may be well acquainted with all Disney characters, brands, and theme parks, but if you are less familiar with the company's bones, then your chances of succeeding as a Disney trader and investor drop significantly. The company’s bones, in this case, include its earnings, net income, revenue, and management.
With a firm like Walt Disney, you also want to stay familiar with its sources of revenue or divisions that drive the most profits. That's the difference between understanding a company as an investor and simply knowing it as a customer.
3. Know the ways you can invest in Disney stock
As a trader or investor, you have two options when it comes to trading Disney stock on the stock market. First, you can own an actual share of the Disney stock on the NYSE stock exchange, which you can consider a long-term investment. Alternatively, you can trade the company's shares through a CFD (contract for difference) and speculate on the Walt Disney stock price moving forward without actually owning the underlying asset.
4. Disney stock trading hours
According to the regular EST trading session schedule, Disney stocks are traded on the NYSE (New York Stock Exchange). Pre-Market trading hours go from 7:00 to 9:30, Market hours from 9:30 to 16:00, and after-market hours from 16:00 to 20:00.
Bottom Line: What Can We Expect from the Disney Stock Price?
There's no doubt that effects of the Covid-19 pandemic have affect Disney stock price, even though in 2021 it has started to recover. And with the vaccination rollout gaining steam, it shouldn't take long before the company's stock is back to its former glory.
If you feel ready to invest in Disney stock at its current price, then you can do so by opening an account with the broker ZFX today. This platform offers a lot of benefits, as we have explained in this guide, and will allow you invest in DIS and many more financial assets in a matter of minutes.