Walt Disney (DIS 1.15%) stock has taken a huge hit over the past few years as the company deals with one problem after another. It's lost nearly half of its value over the past three years, a huge blow to shareholders of the world's premier entertainment company.
Could the tide finally be turning? All eyes are on this one number.
NYSE: DIS
Key Data Points
The more it changes, the more Disney stays the same
Disney hasn't changed much from its core as a global entertainment powerhouse. It produces excellent content and distributes it in various forms of media, and it translates its creative work into products, parks, and experiences. It's a model that has worked for decades.
The mediums it uses to get its content out have changed over the years, though, and it's expanded its repertoire through acquisitions and new franchises. Notably, it launched Disney+ to great fanfare in 2019. It was well positioned to benefit from skyrocketing streaming subscriptions when the pandemic started.
But things might have moved a bit faster than it was expecting. The launch of Disney+ came with large and costly marketing campaigns to roll out the network as well as expenses to drive constant fresh content on the site. This is how it's looked over the past three years.
Image source: Statista.
Nearly five years in, the streaming business is finally in the black. However, what's not included here is ESPN+, which is reported as part of Disney's sports segment instead of its entertainment segment. With ESPN+, direct-to-consumer, or the streaming business, still posted an operating loss in the 2024 fiscal third quarter (ended June 29).
Management has said that Disney is on track to deliver its first complete streaming operating profit in the fourth quarter, which will be reported in early November. If it comes through, expect Disney stock to get a boost.
