Disney (DIS, Financial) is currently exploring the capabilities of Runway AI's generative technology, assessing its potential uses for the company's future projects. Although discussions with the startup are ongoing, Disney has not yet committed to incorporating these AI tools into its production processes. This development follows reports that Netflix is already utilizing Runway AI to enhance content creation through faster and more cost-effective special effects. As Disney evaluates the possibilities, the company remains focused on exploring innovative technological advancements while maintaining its established production techniques.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for The Walt Disney Co (DIS, Financial) is $130.87 with a high estimate of $148.00 and a low estimate of $79.00. The average target implies an upside of 8.30% from the current price of $120.84. More detailed estimate data can be found on the The Walt Disney Co (DIS) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, The Walt Disney Co's (DIS, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Walt Disney Co (DIS, Financial) in one year is $114.27, suggesting a downside of 5.44% from the current price of $120.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Walt Disney Co (DIS) Summary page.
DIS Key Business Developments
Release Date: May 07, 2025
- Adjusted EPS: Up 20% from the prior year.
- Experiences Segment Performance: Delivered strong results with all-time high returns on invested capital.
- ESPN Prime Time Audience: Up 32% among the key 18 to 49 demographic, marking ESPN's most watched Q2 in prime time ever.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Walt Disney Co (DIS, Financial) announced a new Disney Theme Park in Abu Dhabi, expanding its global presence and reaching new audiences.
- The company's Experiences segment delivered strong results, with returns on invested capital at all-time highs.
- Adjusted EPS for Q2 2025 increased by 20% from the prior year, indicating strong financial performance.
- The Entertainment business, including movies and sports, continues to generate strong growth, with Marvel's Thunderbolts being the number one movie globally.
- ESPN's Q2 prime time audience among the key 18 to 49 demographic was up 32%, marking its most-watched Q2 in prime time ever.
Negative Points
- The streaming business faces challenges with new entrants impacting advertising supply, despite strong demand.
- International visitation to domestic parks has not returned to pre-COVID levels, affecting overall attendance.
- Per capita spending in China is lower due to economic challenges, impacting the international segment.
- The company acknowledges that producing too much content for streaming platforms has affected quality, particularly in the Marvel segment.
- The direct-to-consumer segment, including Disney+, faces competition and requires strategic bundling to drive growth.
