Every Disney investor should pay attention to this number

Walt Disney (NYSE:DIS) The stock has fallen sharply in value over the past few years as the company has struggled with one problem after another. It has lost almost half of its value in the past three years, a huge blow to shareholders of the world’s leading entertainment company.

Is the tide finally turning? All eyes are on this one number.

The more things change, the more Disney stays the same

Disney hasn’t changed much from its core as a global entertainment powerhouse. It produces excellent content, distributes it across media forms, and translates its creations into products, parks, and experiences. It’s a model that has worked for decades.

The mediums it uses to deliver its content have changed over the years, and its repertoire has expanded through acquisitions and new franchises. Interestingly, it launched Disney+ with much fanfare in 2019. It was well-positioned to benefit from skyrocketing streaming subscriptions when the pandemic hit.

But things may have moved a bit faster than expected. The launch of Disney+ involved a large and expensive marketing campaign to launch the network, as well as the expense of constantly introducing new content to the site. That’s how it’s been for the past three years.

Image source: Statista.

After nearly five years, the streaming business is finally in the black. But that doesn’t include ESPN+, which is reported as part of Disney’s sports segment, not its entertainment segment. ESPN+, the direct-to-consumer streaming business, still posted an operating loss in the third quarter of fiscal 2024 (ended June 29).

Management said Disney is on track to post its first full streaming operating profit in the fourth quarter, which will be reported in early November. If it does, expect Disney shares to surge.

Is it worth investing $1,000 in the Walt Disney Company now?

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Jennifer Saibil holds positions at Walt Disney. The Motley Fool holds positions at and recommends Walt Disney. The Motley Fool has a disclosure policy.