Question

How has Disney’s percent of revenues and profits changed since 2015 and how do you think it will change going forward? Why?

PLEASE BE VERY DETAILED :)

Answer 1

The Walt Disney Company which is known as Disney is an American company that has diversified business of multinational mass media and entertainment, headquartered in California.

The Company operates in 5 segments, Studio Entertainment, Media Network, Parks/Resorts, Consumer Products, and Interactive Media.

At the time of writing this answer, the stock price of Disney is USD140.

The Walt Disney Company's estimated networth is USD130 billion

Below Table shows Disney's Revenue from 2015 to 2019:

Disney Annual Revenue ( Million US$)

2019	$69,570
2018	$59,434
2017	$55,137
2016	$55,632
2015	$52,465

As we can see from the table that Disney's revenue has increased from $52,465 in 2015 to $69,570 in 2019.

Disney Annual Net Profit ( Million US$)

2019	$11,054
2018	$12,598
2017	$8,980
2016	$9,391
2015	$8,382

As we can see from the table that Disney's revenue has increased from $8,852 in 2015 to $11,054.

As we can see that the Company has increased its revenue by USD 10Billion in its revenue from 2018 to 2019. This surge was due to healthy growth in its media networks, studio entertainment, and park and resort business. The company also announced the Disney-Fox merger in early 2019 and has an increased stake in Hulu, a streaming player.

The Company stock price has climbed up by 25% in the last 5 years due to segment-wise revenue and income. The main reason behind this huge surge is due to strong performance in parks & resorts and studio entertainment business and also the FOX acquisition.

Is Disney stock expected to rise or fall?

In my opinion, Disney share price could rise this year as well and it could touch an all-time high. There are so many possibilities for this.

Disney+ could be the best reason for Disney to rise furthermore. Disney+ already have 10million subscriber with in the first day of its launch. This streaming service is getting lot of attention to date. The stock price could go up to 145 to 153 in one year.

Disney has businesses in 4-5 segments and all are profitable. All around the world people are attracted to Disney's parks and resorts.  

The stock price could go up to 145 to 153 in one year.