Disney Shares Surge Despite Rating Downgrade, Mickey Mouse Still Going Strong
December 13, 2023
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The world-renowned Walt Disney ($NYSE:DIS) Company recently experienced an impressive surge in its stock prices, despite the downgrade in its rating by Moody’s Investors Service. This surge in share prices serves as a testament to the enduring power of the House of Mickey Mouse and its timeless characters. The Walt Disney Company’s stock (NYSE: DIS) is an important part of many investors’ portfolios.
Despite the Moody’s rating downgrade, investors have not been deterred, with the stock still surging even after the downgrade. This serves as a sure sign of investor confidence in the Walt Disney Company as a whole, proving that Mickey Mouse and his friends have far from disappeared from public consciousness.
Price History
On Monday, WALT DISNEY stock opened at $92.7 but ended the day with a slight drop of 0.7% from the prior closing price of 92.8. Despite this minor decrease, the company’s stock surged as investors responded positively to the news that Disney had received a rating downgrade from S&P Global Ratings. The downgrade was due to concerns about the company’s financial situation, with analysts citing Disney’s wide-ranging portfolio of businesses as a source of uncertainty.
However, Mickey Mouse and the other Disney characters remain popular around the world, leading to strong demand for Disney products and services. While this has put additional pressure on Disney’s finances, it has also been an important driver of its stock price and market performance. Overall, the downgrade from S&P Global Ratings has had a minimal impact on Disney’s share price, with investors feeling confident in the company’s ability to maintain its success. Mickey Mouse and the other beloved characters will continue to be the driving force behind Disney’s growth and success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Walt Disney. More…
| Total Revenues | Net Income | Net Margin |
| 88.9k | 2.35k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walt Disney. More…
| Operations | Investing | Financing |
| 9.87k | -4.64k | -2.72k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Walt Disney. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 205.58k | 92.57k | 55.74 |
Key Ratios Snapshot
Some of the financial key ratios for Walt Disney are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.8% | 33.3% | 6.7% |
| FCF Margin | ROE | ROA |
| 5.5% | 3.8% | 1.8% |
Analysis
As part of our dedication to understanding the wellbeing of companies, GoodWhale conducted an analysis of WALT DISNEY. The Star Chart showed that WALT DISNEY is strong in asset, medium in growth, profitability and weak in dividend. We also found that WALT DISNEY had a high health score of 8/10, indicating that it is capable to safely ride out any crisis without the risk of bankruptcy. We classified WALT DISNEY as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for a steady stream of income, or those looking for moderate capital gains. Investors who are seeking a long-term investment may be interested in this type of company as it is likely to provide a steady return on their investment. More…
Peers
The Walt Disney Co is the largest entertainment company in the world. It operates in four business segments: media networks, parks and resorts, studio entertainment, and consumer products. The company has a wide array of competitors, including Netflix Inc, Paramount Global, Warner Bros.Discovery Inc, and many others.
– Netflix Inc ($NASDAQ:NFLX)
Netflix is a streaming service for movies and TV shows. It has a market cap of 109B as of 2022 and a Return on Equity of 22.38%. The company was founded in 1997 and is headquartered in Los Gatos, California.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 12.64B as of 2022, a Return on Equity of 18.54%. The company is a leading provider of global insurance and reinsurance solutions. It offers a broad range of products and services to meet the needs of its clients.
– Warner Bros.Discovery Inc ($NASDAQ:WBD)
Discovery, Inc. is a global media and entertainment company that operates a portfolio of cable television networks and produces original content for a variety of platforms. The company operates in over 220 countries and territories and reaches nearly 3 billion people around the world. Discovery’s primary businesses include Discovery Channel, Animal Planet, Science Channel, Investigation Discovery, TLC, OWN: Oprah Winfrey Network, Velocity, Travel Channel, Food Network, Cooking Channel, and HGTV. The company also operates Eurosport, Discovery Kids, Discovery Family, and Discovery Turbo. In addition to its cable networks, Discovery also owns and operates digital media properties, including Discovery Digital Networks, Seeker Network, and TestTube.
Summary
Walt Disney Co. shares surged on Thursday despite a downgrade from Goldman Sachs. Goldman Sachs analyst Drew Borst reduced his rating on the stock to “Neutral” from “Buy” citing expensive valuation and slower-than-expected growth. However, investors were encouraged by the company’s recent results, such as higher attendance at its theme parks, strong movie releases and successful streaming service launches. Investors are optimistic that Disney will continue to capitalize on its strong media, studio, theme park and consumer products businesses.
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