A Brief about the Company
Formally established in 1929, Disney is one of the earliest American corporations in the film production industry. Headquartered in Burbank, California, it has become the best-known source of family entertainment in the 20th and 21st centuries.
On 6 August, 2021, the U.S. Bureau of Labor Statistics Office released the July jobs report, which showed positivity in the American economy, where it added 943,000 jobs, compared with the expectations of 870,000.
According to the report, the film and music production industry recorded a 17.8% change in July, which is a very positive sign to reopening soon! But still, we should put in mind the delta variant now, which could be harmful to Disney’s future operations.
Through the pandemic, Disney remained one of the most powerful entertainment companies in the world, and it has managed to stay profitable while sales have decreased according to the 2020 annual report, which stated that the service revenue for fiscal 2020 decreased by 2%, by USD 1.3 billion to USD 59.3 billion. This was driven by the low volume of theme parks and low revenues of resorts and cruise lines. The fall was also due to a decrease in revenue of theatrical and stage play distribution, as well as lower revenue of advertising and sales of third parties television and film programs.
These decreases were partially offset by the consolidation of TFCF – the company acquired by Disney on March 20, 2019 – and Hulu, in addition to an increase in subscription revenue from Disney+ and Hulu.
This information made financial analysts around the world more optimistic about the forecast of Disney’s stock, as they are anticipating a price range of USD 212 to 230 in the mid-long term.
DISCLAIMER: This content is for presenting general information only. Any research or information mentioned here is objective and does not take into regard your financial position, investments, or objectives. INGOT Brokers (Australia) Pty Ltd accepts no responsibility for any use that may be made of these comments and for any resulting consequences. We do not give any warranty in regard to the completeness of this information or its accuracy and thus its use. Leveraged trading carries a high risk and is not suitable for all, and anyone who uses leverage is doing so entirely at their own risk.