Every Disney investor should keep this number in mind

Walt Disney (DIS 0.32%) the stock has taken a huge hit in recent years as the company faces one problem after another. It has lost almost half its value in the past three years, a huge blow to shareholders of the world’s leading entertainment company.

Could the tide finally be turning? All eyes are on this number.

The more it changes, the more Disney stays the same

Disney hasn’t changed much from its core as a global entertainment powerhouse. He produces great content and distributes it in various forms of media and translates his creative work into products, parks and experiences. It’s a model that has worked for decades.

However, the mediums it uses to get its content out have changed over the years, and it has expanded its repertoire through acquisitions and new franchises. Notably, it launched Disney+ in 2019. It was well-positioned to benefit from skyrocketing streaming subscriptions when the pandemic began.

But things might have moved a little faster than expected. The launch of Disney+ came with large and expensive marketing campaigns to expand the network, as well as spending to generate constant fresh content on the site. This is how it has looked in the last three years.

Image source: Statista.

After nearly five years, the streaming business is finally in the black. However, what is not included here is ESPN+, which is reported as part of Disney’s sports segment instead of its entertainment segment. With ESPN+, the direct-to-consumer or streaming business, it posted another operating loss in the fiscal third quarter of 2024 (ended June 29).

Management said Disney is on track to post its first full profit from streaming operations in the fourth quarter, which will be reported in early November. If it arrives, expect Disney stock to get a boost.