Walt Disney

What is Disney stock?

Disney stocks are the publicly traded shares of The Walt Disney Company, a global mass media company with the rights to characters like Mickey Mouse. Founded in 1923 in the USA, by brothers Walt and Roy Disney, it established itself in the animation industry before branching out into live-action films, TV, theme parks, consumer products and a streaming platform.

Although Disney's Mickey Mouse cartoons existed in the 1920s, it was the success of the animated film Snow White and the Seven Dwarfs in 1937 which kickstarted enormous international success, with that film grossing more than $1.7 billion when adjusted for inflation. Disney's first common stock was circulated in 1940 and it started to trade over-the-counter in 1946.

It was following the success of its first theme park that Walt Disney went public in 1957, with Disney shares going for $13.88 a share. It's currently listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol DIS and its stock has split six times between 1956 and 1998.

The Walt Disney Company is ranked 48 on the Fortune 500 list and 145 on the Global 500 list. It's also a constituent of the S&P 500 Index, the S&P 100 Index and the Dow Jones Industrial Average Index (DJIA).

How has Disney stock performed over time?

In 1984, under CEO Michael Eisner, the company experienced a huge financial surge due to the success of its subsidiaries, including Disney Studios and Hollywood Pictures. Capital Cities (ABC) was also acquired in 1996, as well as Pixar, Marvel Entertainment, Lucasfilm and 21st Century Fox in the 2000s and beyond.

Due to its successful financial performance over time, Disney has paid dividends per share year after year. Its 34-year dividend history started in 1989 and stopped in 2020 during the pandemic. Reports suggest that the company plans to reinstate dividends following the recovery of its theme park and experience segment. This may prompt more investors to buy shares in Disney.

Disney stock has had its ups and downs. Disney's 2021 annual earnings per share was $1.09, a 168.99% decline from 2020. However, the following year, that figure rose by 57% to $1.72. DIS stock value hit an all-time high of $201.91 on 8th March 2021, even though theme parks remained closed at that time; Disney+ subscriber growth was reported as a key factor in offsetting declines in other divisions of the business.

However, stocks plummeted and hit a nine-year low in August 2023, with explanations pointing to a decline in Disney+ subscribers, poor performance on film releases and reduced footfall at its theme parks, linking to reduced spending on non-essential purchases in a poor economic climate.

Despite this dip, the appeal of pre-pandemic dividends and strong financial performance has attracted many traders and investors to forecast, buy and trade Walt Disney stock.

What affects the Disney stock price?

Walt Disney shares are impacted by a range of internal and external factors. Investors should monitor the following when assessing Disney stock growth or decline:

• Competitors: Disney operates across a wide range of sectors, from streaming to entertainment and experiences. This means it has many competitors. The likes of Universal, Six Flags and Netflix are considered some of Disney's main competitors. News relating to these organisations can cause the Disney market share and stock price to fluctuate.
• Revenue and financial performance: Disney tends to report good earnings per share and impressive revenue worldwide. While this can positively impact the share price, it can also sometimes happen that market expectations are built up too high – even a strong performance can cause prices to drop if it falls short of those expectations.
• Public image: Disney was considered amongst the most valued brands in the world in 2022. However, evolving discussions over how it handles potentially problematic content in older films and controversies such as its response to the so-called 'Don't Say Gay' bill in Florida in 2022 can take their toll on the company's reputation and therefore the DIS share price.
• Performance across divisions: Walt Disney is spread across two core segments, each with its own divisions. The 'media and entertainment' and 'parks, experiences and products' segments can vary in success, which means that, while one might positively impact DIS shares at a given time, another could bring them down.

How to trade or invest in Disney stock

With Tradu, you can trade Walt Disney shares with derivatives like contracts for difference (CFDs). You won't take full ownership of the underlying asset using this approach and this means you can speculate both ways and benefit from both bull and bear markets.

Instead, you can invest directly in Disney stocks and take full ownership of the underlying asset. Each approach has its benefits.

Trading Disney stocks

Trading in a contract for difference means you exchange the difference in the DIS stock price between the points at which the contract was opened and closed, based on the direction in which you expected it to move.

You can execute either of these approaches using leverage to increase your market exposure from a smaller deposit. However, you'll want to consider that leverage can amplify losses as well as profits.

How to invest in Disney stocks

Prefer to invest in Disney stocks? This approach means you'll take full ownership of the underlying asset. Many investors use this as a long-term strategy, as it can involve less volatility than trading derivatives. You'll buy DIS stocks in the hope that the price will rise, allowing you to sell for a profit.

Remember, you can't use leverage when trading stocks directly. And needing the stock to grow in value means you won't be able to profit in bear markets, so your opportunities are comparatively limited even though it can be more profitable overall.

What are the pros and cons of trading Disney stocks?

When determining whether to trade in DIS stocks rather than invest in the company directly, there are pros and cons to consider.

Pros of trading Disney stocks

• Leverage: You could maximise potential profits from a smaller deposit using leverage, enabling you to get big returns in quick fashion. However, you should do so with a full understanding of the risks involved – that increased exposure cuts both ways.
• Trade both ways: When you trade derivatives, you can take advantage of both bull and bear markets after speculating on the price moving in a particular direction. Investment cuts off half of that potential.
• Coverage: Walt Disney is one of the most famous companies in the world, which means it receives extensive news coverage. Monitor key announcements in the news to keep up to date with forecasts for the Disney share price and you'll have plenty of information with which to make decisions.

Cons of trading Disney stocks

• Leverage: If you choose to use leverage, do so with full understanding that increased exposure cuts both ways and may incur losses rather than profits. Make sure you take advantage of our risk-management tools to only enter positions where you can comfortably absorb losses.
• Market volatility: The stock market can be unpredictable, especially in the shorter term which applies to derivatives trading, so you should remain diligent when trading Disney stocks in case it moves in a direction you weren't anticipating.

How to start trading Disney stocks with Tradu

1. Open a Tradu account: Register online and add funds with the click of a button.
2. Build your knowledge: Use our handy trading resources and insights to get to grips with how to boost your potential profits.
3. Refine your strategy: Work out your level of risk tolerance and decide on your trading goals.
4. Open your first position: Choose to trade financial derivatives like CFDs, using risk-management tools to limit possible losses. Alternatively, invest in DIS stocks
5. Get support: Tap into our 24/5 customer service system for support with your account.
6. Diversify: Build your portfolio using a range of markets, such as indices, forex, crypto and commodities. This helps to spread your risk.