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Could Disney Be a $1 Trillion Company by 2030?

By Parkev Tatevosian, CFA and Trevor Jennewine – Updated Jan 3, 2022 at 9:31AM

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The pandemic has devastated the House of Mouse, but its streaming segment could be the key to lifting the stock higher.

Disney (DIS -0.84%) now trades at a market cap of $282 billion, so it will be a big lift for it to reach $1 trillion. However, The House of Mouse has a major growth driver in its streaming segment that could help it reach that target.

In this segment from "The Five," recorded on Dec. 14, contributors Trevor Jennewine and Parkev Tatevosian discuss Disney's chances of surpassing a $1 trillion market cap by 2030. 


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Trevor Jennewine: I have a question for you, Parkev. I know that you write about Disney fairly frequently based on what I've seen. Do you think Disney could be a $1 trillion company?

Parkev Tatevosian: I do, and what would fuel Disney's expansion to the $1 trillion market cap will be the growth of the streaming side of the business. Investors are applying a higher multiple to streaming business. So as they expand that streaming side of the business, and the CEO recently reiterated that they are expected to reach about 300 million subscribers by 2024, and 200 million of that will come from Disney Plus. If they stay on that path, expanding that streaming business, I think they can realistically reach a $1 trillion market cap by 2030 as well.

Trevor Jennewine: Yeah, I agree with you there. I think they have 118 million subscribers in Disney Plus right now, and last time I checked, Netflix (NFLX -1.26%) stock trades around 9.6 times sales, and I think Disney is around four times sales. So Netflix certainly does have twice the price-to-sales ratio that Disney has. I see a lot of room for Disney to grow.

Parkev Tatevosian owns Walt Disney. Trevor Jennewine owns Walt Disney. The Motley Fool owns and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.

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