Bloomberg Intelligence Disney Shares Surge as Strength in Parks, Streaming Lift Outlook
May 7, 2025
Disney's stock has surged by 9%, thanks to a turnaround strategy from Bob Iger that instilled investor confidence. The company is seeing impressive growth in its parks and streaming services, which have exceeded Wall Street's expectations. Domestic park bookings are thriving, and new ventures like cruise ships promise even more profitability. Comparisons are drawn between Disney's streaming success and that of rivals like Netflix, painting a bright financial future for the entertainment giant.
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Disney's Strong Turnaround Under Iger
- Bob Iger's leadership is key to Disney's turnaround with strong earnings and raised guidance.
- The company aims to double EPS in the next four to five years through investments in parks and new ventures.
Disney Parks Demand Resilient
- Despite concerns about pricing and competition, Disney's domestic parks showed 13% operating income growth.
- Future bookings are up, showing resilient demand even with new competitors and international softness.
Streaming Profitability Growth Expected
- Disney aims to grow streaming operating margins from about 4-5% to 15-16% in 2-3 years.
- They're leveraging pricing, subscription growth, password sharing, and advertising to reach profitability goals.