Sunday, March 31, 2024

Disney Stock Has 20% Upside, According to 1 Wall Street Analyst The Motley Fool

disney cruise stock

It has an unmatched content library and creative team that churns out hits based on beloved characters and franchises, and these are used to populate Disney's media channels, build theme park rides, and develop new feature films. We’d like to share more about how we work and what drives our day-to-day business. Cruises on all brands operated by Norwegian Cruise Line Holdings, Ltd., including Norwegian, Oceania and Regent Seven Seas are eligible for the benefit. All Carnival brands -- which include Carnival, Princess, Holland America, Seabourn, Cunard, Costa, Aida and P&O -- earn benefits, though the amounts are adjusted slightly for European and Australian brands. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

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In August 2011 Disney saw it’s stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. A month later, Disney stock price dropped below $30, which was a year to date low. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years.

Trending: Disney, Iger Defeat Activist Peltz in Shareholder Vote

Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. I want to reiterate that these were wonderful updates, but they represent potential more than actuality. Streaming is still unprofitable, and ESPN has yet to launch this new platform. Film studios are still planning, developing, and producing new content that it expects to attract more dollars. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

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disney cruise stock

We strongly advise doing your own research and seeking out the counsel of a financial adviser before making any stock purchase. It is good to note, however, that even with other OBCs on your account, you might be eligible for the portion of the stockholder benefit credit that exceeds the other credit. So, if your booking came with an onboard credit of $75 and your cruise line stock benefit is $100, you might still be able to get the difference of $25 applied to your cabin.

Disney Theme Parks in Focus After Investor Event: What Wall Street Liked and What Left It “Frustrated” - Hollywood Reporter

Disney Theme Parks in Focus After Investor Event: What Wall Street Liked and What Left It “Frustrated”.

Posted: Wed, 20 Sep 2023 07:00:00 GMT [source]

Here's a look at what stock owners with 100 shares or more can expect when sailing, listed in terms of onboard credit value. Since shareholders receive the same benefits regardless of which Carnival stock they own, we're lumping them together going forward. Norwegian offers a variety of cabin categories, which enables it to accommodate every type of traveler. It was the first cruise line to offer studios exclusively for solo travelers, and it has lodging fit for everyone from people sailing on their own to large families. Revenue for each of the three largest cruise lines declined by between 73% and 80% in 2020. Although the cruise industry's annual revenue almost doubled in 2021 (from $3.36 billion to $6.65 billion), it's still far from the $27.5 billion reported in 2019.

disney cruise stock

Disney says they expect to grow free cash flow in fiscal 2024 significantly versus fiscal 2023, approaching levels last seen pre-pandemic. This continued robust free cash flow growth, alongside our strong balance sheet, will position The Walt Disney Company well to address their investment and shareholder goals for the year and going forward. “Our results this quarter reflect the significant progress we’ve made over the past year,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again. Combined with our portfolio of valuable businesses, brands and assets – and the way we manage them together – Disney has a strong hand that differentiates us from others in our industry.

It was also one of the first to offer cruises in the price range of the average traveler. Although affordable cruises are more common now, the market was previously dominated by luxury voyages. That being said, cruise line stocks are still a long-term play that could have some rough seas ahead. Walt Disney Co. reported Q1 profit that fell substantially short of analysts' expectations which sent the stock price to a 10% decline in after-hours trading. Putting Disney’s stock price in the $15 territory, a long way from a previous all time stock price high around $43.

Revenue was flat year over year in the 2024 fiscal first quarter (ended Dec. 30, 2023), but operating income increased 27% year over year, and adjusted earnings per share (EPS) rose from $0.99 in 2022 to $1.22 in 2023. The most obvious improvement was in the streaming losses, which contracted from more than $984 million in 2022 to $138 million in 2023. Iger is maintaining that streaming will turn profitable by the end of fiscal 2024, and this quarter demonstrated that it's a likely possibility. Even when cruise lines have built some momentum, news of potential travel restrictions caused by the delta and omicron variants have sent their stock prices tumbling. It takes some finesse and a good deal of organization to ensure everything is operating smoothly.

The maximum capacity for these cruises is typically between 48 and 148 passengers, depending on the trip. Carnival's sales forecasts are promising, with bookings for 2022 representing growth over 2019's performance. The cruise line has also started opening earlier reservations for future cruises, which led to a $630 million increase in guest deposits as of the third quarter of 2021. This cruise line is still known for its reasonable prices and ability to offer a fun time for everyone. Carnival cruises are popular among families and groups of friends alike, including younger generations. Carnival excels in customer satisfaction, winning the 2021 USA Today Readers' Choice Awards for best ocean cruise line.

Disney’s stock price dropped nearly 70% of its price value in the near 2 year period between late 2000 and late summer 2002. Which outpaced the drop of many other non-tech stocks which fell about half the amount during that time. Disney stock is going up nearly 20% (according to Argus Research analyst Joseph Bonner), and will hit $140 a share within a year. No peer can match the depth of Disney’s iconic characters, franchises, or content library, which will keep the firm’s streaming services in high demand and give the firm a leg up in creating new movies and television shows. Ultimately, only you can decide what is best for your personal financial situation; Cruise Critic can neither support nor advise against your decision to purchase stocks.

Some other cruise line's private islands, like Norwegian's Great Stirrup Cay, don't have a dock, so cruisers must take tender ships (small boats) from the cruise ship to the island. When something goes wrong with one segment, the other ones can lift more weight. That happened early in the pandemic when parks were closed and streaming took off, and conversely, when streaming began to become saturated and parks reopened to high demand.

On a recent sailing, I saw Mickey Mouse, Minnie Mouse, Goofy, and Pluto all in 30 minutes. Speaking of gear, at Castaway Cay, cruisegoers can borrow free towels as soon as they get off of the ship. There are plenty of towel-return stations around the island, so I also never have to carry wet, sandy towels back on the ship. I hate taking tender ships, which can feel like a bit of a time sink, so this is a big bonus to me.

Cruise Line Stock Perks and Shareholder Benefits

disney cruise stock

The cruise line has implemented some of the strictest measures to avoid COVID-19 outbreaks as its cruises resume service. It has a 100% vaccination policy that it extended indefinitely in November 2021. Since all passengers must be vaccinated, Norwegian is able to offer mask-free cruises with no social distancing requirements. California, which has the most equitable tax system in the entire country, is #1 in the nation for new business starts, #1 for access to venture capital funding, and #1 for tourism spending.

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Royal Caribbean stockholders only receive the benefit when sailing with Royal Caribbean, Celebrity and Azamara -- the company's wholly owned brands. No benefit is given for sailing with Silversea, Pullmantur, TUI or Croisieres de France -- lines for which Royal Caribbean, Ltd. holds partial ownership. Royal Caribbean (RCL 1.23%) is distinguished as being one of the most innovative cruise lines. Its ships are packed with state-of-the-art amenities, including virtual balconies, massive water slides, skydiving at sea, and even Broadway shows. However, cruise line companies are reporting strong sales for upcoming cruises, which indicates a rebound in demand. But they've also had to take on significant debt to get through the pandemic, and revenues aren't predicted to get back to pre-COVID numbers until 2024.

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Castaway Club Members and DVC Members Can Now Book Disney Cruise Line Early 2025 Itineraries - WDW News Today

Castaway Club Members and DVC Members Can Now Book Disney Cruise Line Early 2025 Itineraries.

Posted: Fri, 03 Nov 2023 07:00:00 GMT [source]

As with all stock purchases, you do take a risk that the cruise line stocks will not perform as well in the future as perhaps they did in the past, so make sure you understand all the fine print before you invest. Higher operating income at Hong Kong Disneyland Resort attributable to guest spending growth due to an increase in average ticket prices, higher volumes resulting from increases in attendance and occupied room nights. Results reflected 81 days of operations in the current quarter compared to 65 days in the prior-year quarter. Additional an increase at Disney Vacation Club attributable to sales of The Villas at Disneyland Hotel in the current quarter. We've got the rundown of the benefits offered per cruise line and how to get the stocks, plus how and when to snag the credit. Considering how much the pandemic continues to affect cruise lines, investing in them is relatively risky.

Walt Disney Co/TheDIS:US

The cruise line business has high operating costs, and many cruise companies have lost a lot of money. Investors in search of safe stocks may want to stay away from this industry right now. Investors were impressed with the most recent quarterly results, and they sent the stock up. There was no Disney magic in the numbers, but the business is moving in the right direction.

disney cruise stock

Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015. Domestic ESPN revenue and operating income grew year over year in both fiscal year 2022 and fiscal year 2023, demonstrating the value of sports and the power of the ESPN brand. Walt Disney has won its proxy battle with Trian and other activist investors, as shareholders elected Disney’s entire recommended slate of directors. We’re maintaining our $115 fair value estimate and believe the stock’s recent appreciation now reflects forthcoming improvement, which we expect will occur regardless of which side had won.

Walt Disney Profile

While Cruise Critic cannot offer investment advice, members on the Cruise Critic message boards have reported that holding cruise line stocks over time has been beneficial, particularly for those who take multiple cruises per year. Nevertheless, cruise lines tend to have a passionate customer base with plenty of repeat passengers. Over the long term, cruise line stocks may be a good value investment provided you are comfortable with some volatility. According to Lindblad, a majority of guests opted for future travel credits over a refund for voyages that were cancelled or rescheduled due to the pandemic.

The History of Disney’s Stock Price by Markets Insider

If Disney comes through on its promises and plans, the stock should continue to climb higher. Longer term, Disney stock could create shareholder value, and it's not too late to buy. Investors are betting on these things happening the way management says they will. Iger has an excellent track record and knows Disney better than probably anyone else in the world, and he's gained investor confidence. Disney stock is riskier -- and more expensive -- than this analyst seems to believe. Explore how you can make money from others' adventures, including the frontier of space travel.

From 'Ripley' to 'The Jinx: Part 2,' here's what's worth streaming in April 2024

disney cruise stock

I enjoy seeing the Disney characters on the ship, but love seeing Mickey and his pals even more at Castaway Cay. Over the past decade, I've taken eight Disney cruises with my family and friends. When I book, I always make sure Disney's private island in the Bahamas, Castaway Cay, is on the port of call. Even though it's rising this year, Disney stock remains 40% off its highs from 2021.

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While you can purchase as many or as few shares as you'd like, all the cruise lines that offer investor benefits require a minimum of 100 shares to be eligible for the credit. You are looking at a substantial initial investment -- typically thousands of dollars, depending on which parent company you invest in and the cruise line's stock price at the time of purchase. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

Even if successful, newer revenue sources like direct-to-consumer streaming will never equal the profitability Disney once enjoyed. While these stocks remain cyclical, industry consolidation has created a few winning companies. The main competitive advantage that Lindblad enjoys is its ability to offer premium, one-of-a-kind experiences. Travelers with Lindblad can book exciting expeditions all over the world, including to Antarctica, the Caribbean coast, and Patagonia. Because of the types of trips offered, Lindblad has built a loyal base of wealthy customers.

If you invest $4,000 and typically take four cruises per year, each one with $100 in onboard credit (i.e., free spending money), your investment "earns" $400 or 10 percent per year. In most cases, the investor OBC is superseded by other special offer credits, so no stacking. If you shop the deals and frequently get OBCs on your own, then the cruise line's stock perk is less of a benefit after all. The biggest cruise companies own several cruise lines, with each of the major cruise companies taking a unique approach to keeping its customers loyal. If you want to invest in cruise line stocks, you have several attractive options.

Revenues for the quarter and year grew 5% and 7% compared to the prior-year quarter and prior year, respectively. Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.14 from $0.09 in the prior-year quarter and for the year, decreased to $1.29 from $1.75 in the prior year. Excluding certain items, diluted EPS for the quarter increased to $0.82 from $0.30 in the prior-year quarter and for the year, increased to $3.76 from $3.53 in the prior year. The Walt Disney Company operates as an entertainment and media enterprise company. The Company's business segments includes, media networks, parks and resorts, studio entertainment, consumer products, and interactive media.

Norwegian Cruise Line Holdings (NCLH 0.66%) is a hit among casual cruisers and is known for its laid-back atmosphere. Norwegian offers what it calls "freestyle cruising," meaning its cruises have no dress codes, no set dining times, and no assigned seating. If you had invested $1,000 in Disney's IPO your stock today would be worth over 3 million dollars today. The best part about seeing the characters is that the lines to take pictures with them are never long.

The travel company has seen significant increases in its booking numbers, even compared to pre-pandemic times. In its third quarter 2021 financial results, it reported that 2022 bookings were 51% ahead of bookings for 2021 and 27% ahead of bookings for 2020. Given time, Disney has enough levers to pull to rehab the House of Mouse and get its profits growing again, I'm sure. My bigger concern is that investors are already assuming this growth will happen. Walt Disney (DIS 0.16%) stock -- like most stocks -- got a bit banged up on Wednesday after higher-than-expected inflation data dashed investors' hopes for a series of Federal Reserve rate cuts in 2024.

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