Disney (DIS) Stock Analysis | Q1 Results | Disneyland Is BACK! But Sports Drag On Earnings

TL;DR

Disney stock is up after reporting strong Q1 earnings, particularly in the Disney Parks division, and considering bidding on the NFL Sunday Ticket, but faces tough competition from Apple and Amazon.

Transcript

what is going on investors hopefully guys are doing well out there now it's time to talk about disney stock which if you own a couple of shares you're feeling really good right now during the regular session the stock was up three and a third percent in the after hours up nearly seven and a third percent up to about 159 dollars per share we'll talk... Read More

Key Insights

• 💪 Disney's Q1 earnings demonstrated strong revenue growth, contributing to the stock's positive performance.
• 🤗 The Disney Parks division's revenue recovery indicates pent-up demand and a favorable easing of COVID-19 restrictions in certain areas.
• 💡 Bidding on the NFL Sunday Ticket provides opportunities for Disney, but the competition from Apple and Amazon poses a challenge.
• 👾 Focusing on pre-game and post-game shows rather than covering live events could reduce costs for Disney's media and entertainment division.
• 🎚️ Technically, Disney's stock has reached a resistance level, and a breakthrough above $168 could drive further momentum.
• 😀 Disney's balance sheet shows substantial cash reserves, but compared to tech giants like Apple, it may face challenges in securing rights to premium content.
• 🔉 The stock's performance reflects investors' optimism about the recovery of the Disney Parks division and potential opportunities in the media and entertainment sector.

Questions & Answers

Q: How did Disney's Q1 earnings perform overall?

Disney's Q1 earnings showed a 34% YoY revenue growth, beating expectations by $860 million. However, operating income in the media and entertainment division was down 44% due to high costs associated with sports rights.

Q: What contributed to the strong performance of the Disney Parks division?

The Disney Parks division witnessed a remarkable comeback, with revenue reaching $7.2 billion, nearly equaling pre-pandemic levels. The softening of COVID-19 restrictions and potential easing of mandates influenced people's perception and increased their willingness to visit Disneyland.

Q: Is Disney planning to bid on the NFL Sunday Ticket?

Yes, Disney's CEO confirmed that they are bidding on the NFL Sunday Ticket, which allows viewers to watch out-of-market Sunday games. However, rumors suggest that Apple and Amazon are also bidding, making it a competitive process.

Q: What challenges does Disney face in securing the NFL Sunday Ticket rights?

Disney faces tough competition from Apple and Amazon, particularly given Apple's significant cash reserves and willingness to spend on such rights. This could make it difficult for Disney to win the bid without incurring substantial costs.

Summary & Key Takeaways

• Disney stock experienced a significant increase in the regular and after-hours sessions following the release of its Q1 earnings, which showed a 34% YoY revenue growth.

• The Disney Parks division showcased impressive results, with revenue almost reaching pre-pandemic levels, indicating a strong recovery in this segment.

• Disney is rumored to be bidding on the NFL Sunday Ticket, currently owned by AT&T's DirecTV, but faces tough competition from tech giants Apple and Amazon.