For Walt Disney Its streaming platform Disney+ has been a watchdog since the pandemic, when it began to look very different, even cross Netflix Hulu, Hostar and ESPN+ in India, with all their platforms.In fact, many expected this quasi-geometric progression to take away first place in the field sooner rather than later. But this second quarter of the financial year has shown that the data has disappointed the market.
and he is Disney+ lost 4 million subscribers in that period to consolidate 157.8 millionThat’s when Wall Street expected it to reach a new million users. Most of them come from Disney+Hostar in India. A place where it also posted its lowest revenue per user that saved revenue compared to a 300,000 drop in the United States, where the ratio is much higher, besides implementing price increases on the platform. and this is especially relevant after amounting to more than 20 million worldwide in the same period last year.
Now, it’s time to save after Data, which is why it has announced that it is in the process of reducing the amount of its content and eliminating some titles and making changes in the United States, How to combine Hulu and Disney+, one of the most profitable platforms.
cost cutting, 3,000 million announced after the return of Bob Iger, which also includes mass layoffs of its 7,000 employees. In fact, Disney’s CEO attributes the loss of customers to a With only 4 years of “maturation process” life.
In form of Its quarterly earnings rose 13% to 21.8 billionThat was in line with expectations and highlighted a 20% increase in Parks and Resorts earnings to $2,200 million.
It hasn’t been more than a week since the market fell. With a loss of 11.35% in the last 5 days9% for the month, 15.2% for the quarter and 5% for the year so far.
Regarding Wolfe Research’s recommendations, its analyst Peter Supino believes that There are “risky” projections and “bad” television. also indicates A “cognitive dissonance” in average direct-to-consumer income With high prices and low cost. And it’s not as if the increase in content hasn’t increased the number of subscribers or revenue per user. In fact, the analyst cut his expectations for operating income for 2024 by 5%. He has cut his rating on Disney shares from overweight to neutral and Leaves its new price target on hold from the previous $133 per share.
At the same time, his expert Michael Morris from Guggenheim keeps juggling buying Disney shares in the market, But he reduces his shares from $5 to 125 OP.They moderate their estimates, even as they reflect confidence in the potential and strength of Disney’s stock, largely due to expected growth in parks and the company’s renewed focus on profitable development of its media and entertainment assets. .
From TipRanks we see that 14 of the 18 experts following the stock chose a Hold, 4 with a price target of $127.60, cWith the possibility of improving the value of the value of about 40%.
But buy recommendations on value remain. This is the case for Citigroup, Deutsche Bank and Loop Capital. In all three cases, however, their respective targets on Disney shares would be undervalued. At Citigroup, its analyst Jason Bazinet cut it to 125 from a previous 130.In case of Deutsche Bank, its expert Brian Kaft cut it to 131 from the previous 135 in case of investment banks and Alan Gould of Loop Capital to 125 from 130.
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