• The Walt Disney Company was founded in 1923 and had its IPO on the NYSE in 1957
• The stock ticker for the Walt Disney Company is DIS
• According to FY2022 financial statements, Disney generated over half (55%) of its revenue through its Media and Entertainment segment, while parks and related services accounted for 28.7% of annual revenue 
• As of April 2023, Disney had a market capitalization of over $183 billion - making it one of the largest publicly-traded companies in the world
• In 2019, the Walt Disney Company completed a $71 billion acquisition of 21st Century Fox, which significantly expanded its media and entertainment portfolio
• Disney is a component of the Dow Jones Industrial Average, as well as the S&P 500 - two core benchmark indexes of the United States stock market 
• The Walt Disney Company has a long history of stock splits. Since going public, the company has split its stock seven times, most recently in 2015 with a 2-for-1 split
• As of 2023, The Walt Disney Company does not pay dividends to shareholders

The Walt Disney Company has had mixed stock performance over the past five years. The stock currently stands near the 2018 level at $99.60, which is a steep decline compared to the near $200 highs reached in 2021. 

The Covid-19 pandemic has been especially difficult for Disney, as lockdown measures nearly evaporated a large revenue segment of the company, namely its parks, and entertainment venues. This caused the company to stop paying dividends, as a measure to save cash for the ongoing operations of the business. 

Dividend cuts dealt a blow to the stock, which has lost over 27% of its market value over the past 12 months. 

However, despite the short-term difficulties, Disney has plenty of variables going in its favor. Its vast catalog of content and array of subsidiaries means that the company’s revenue streams are fairly well-diversified. The company’s bottom line is not in bad shape, either. According to the Q4 2022 financial report, Disney generated $23.5 billion in revenues and $1.28 billion in net income - both of these figures have increased YoY. 

Overall, Disney is a company with a long track record of delivering value to shareholders and could be on the right track to regain some of its lost ground in the coming years. 

"The company had gone through a very difficult period, exacerbated by a global pandemic. And more than anything, the company needed stability, needed to establish a set of priorities and focus on them. The only way you end up getting to success is by deciding what the opportunities are, and then organizing your people and your company to go after them." - Bob Iger

New investors should consider the relevant advantages and disadvantages of buying Disney stock before putting their capital at risk. The company’s stock performance has not been ideal over the past few years, which is why investors should conduct a cost-benefit analysis before investing. 

Pros

• Brand recognition and diversification - Disney is a world-renowned brand that also owns and operates a number of popular media and entertainment companies, which gives the company plenty of diversity in terms of income streams
• Steady revenue growth - Disney has managed to steadily grow its revenues after the Covid-19 pandemic, thanks to growth from its media and theme park segments
• Successful acquisitions - Disney has a history of successful acquisitions, including Marvel, Pixar, and most recently, 21st Century Fox, which have expanded its content library and diversified its revenue streams
• Strong financials - Disney’s balance sheet is strong and the company has enough cash to fund growth in the long run, which is important for long-term investors

Cons

• Dependence on media - While Disney has diversified its business, it still heavily relies on its media networks segment for revenue. Streaming services have been steadily taking market share away from traditional media outlets
• Cyclical business segment - Disney's parks and resorts segment is highly cyclical and is susceptible to economic downturns, as people may cut back on discretionary spending during tough times
• Capital-intensive parks - Disney requires substantial amounts of capital to sustain and grow its parks and resorts business unit, which means that Disney may often be forced to take on more debt

• The Walt Disney Company is one of the largest entertainment and media companies in the world, with a market capitalization of over $183 billion
• Over half of Disney’s revenue comes from its media and entertainment segment
• The parks and resorts segment of Disney suffered during the Covid-19 pandemic, causing the company to discontinue dividends
• Disney has ample room for growth through its subscription-based services, such as Disney+ and Hulu
• Disney has a long track record of revenue increases, which could be the primary driver of stock price growth in the long term