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Disney - AI Stock Analysis
Analysis generated November 28, 2024
The Walt Disney Company, commonly known as Disney, is a diversified multinational entertainment and media conglomerate. Established in 1923, the company has grown into one of the giants of the entertainment industry. Disney operates through various segments including Media Networks, Parks, Experiences & Products, Studio Entertainment, and Direct-to-Consumer & International. With a portfolio that includes well-known brands such as Disney, Pixar, Marvel, Star Wars, and National Geographic, the company remains a dominant player in both traditional and digital entertainment.
Fundamental Analysis
Disney's revenue for the last quarter was $22.6 billion. While this represents a decrease of 2.51% compared to the previous quarter, it exhibits a year-over-year increase of 6.28%, highlighting positive growth compared to the same quarter last year.
The net income for the last quarter was $460 million. This shows a significant drop of 82.45% compared to the quarter before it, though, year-over-year, it indicates an increase of 74.24%. In this case, the sharp quarter-over-quarter drop requires attention and may point to internal challenges or external market conditions.
Disney's EBITDA for the last quarter was $2.45 billion, representing a decrease of 164.96% compared to the previous quarter. Nevertheless, this figure reveals a year-over-year increase of 7.57%.
The current Price-to-Earnings (P/E) ratio is 42.44. This relatively high P/E ratio could indicate an overvaluation of the stock, possibly pointing to a bearish outlook. Additionally, insider selling in recent months could be a negative signal, as insiders generally sell stock for a variety of reasons, but multiple sales could suggest concerns about future performance.
Technical Analysis
Disney's current stock price is $117.60, an increase of 22.25% compared to a month ago, showing a strong short-term uptrend. Over the long term, the stock price has increased by 28.13% compared to a year ago, reflecting persistent bullish momentum.
The current SMA10 (Simple Moving Average - 10 days) is 115.50, which is slightly higher than the previous SMA10 of 115.09. This uptick suggests a continuing upward trend in price movement.
The Relative Strength Index (RSI) is 53.9, which indicates a neutral condition. This middle-ground RSI implies neither overbought nor oversold conditions, pointing to a balanced market view.
Alternative Data Analysis
Disney has 1,094 open positions according to data from the most popular job boards, reflecting an 8% increase over the last couple of months, which is indicative of growth and expansion. Employee sentiment is generally neutral, suggesting an average workplace environment without strong positive or negative leanings.
In terms of customer acquisition, Disney has an estimated 14 million visitors to their webpage with stable traffic in recent months. However, the estimated 84,000 daily downloads of their mobile apps have decreased by 33%, a concerning trend as it may signify a potential loss in customer engagement or interest.
Regarding customer engagement, Disney has 40 million followers on Instagram and 11 million followers on Twitter, but these numbers have not shown any meaningful growth or decline recently. Additionally, AltIndex's AI score for Disney stands at 54, a neutral hold signal.
Conclusion and Recommendation
While Disney exhibits strong brand value and a diversified business model, the latest financial metrics point to areas of concern, especially with significant quarter-over-quarter declines in revenue, net income, and EBITDA. Despite this, year-over-year growth remains positive.
The stock's current P/E ratio suggests a potential overvaluation, and insider selling adds to bearish indicators. However, technical analysis shows a strong upward trend, and stable RSI supports a neutral market view.
The alternative data indicates mixed signals, with a positive outlook on job postings but concerns about declining app downloads. Given these varied factors, the AI score recommendation of 54 aligns with a hold position. Therefore, considering the comprehensive analysis, a conservative approach to Disney's stock is advised.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
