A lot is happening at Entertainment giant Walt Disney (NYSE:DIS). The company is collaborating with Epic Games and investing about $1.5 billion in the Fortnite maker in exchange for an equity stake. It also plans to buy back shares worth $3 billion this year. These moves come just as Disney delivered a robust first-quarter performance marked by a gain of 1.2 million subscribers at Hulu. It expects to add 5.5-6 million Disney+ Core subscribers in the second quarter.
Disney’s collaboration with Epic is aimed at introducing new games and creating an entertainment universe to expand Disney’s reach. Epic boasts of over 100 million active players and creators. This multi-year project will include interoperability with Fortnite, new shopping and content experiences, as well as the ability to create their own storylines for users.
Importantly, this is Disney’s most significant foray into the world of gaming so far, offering promising opportunities for growth and expansion. Still, Disney is no stranger to gaming. Licensed games from the company have seen multiple award nominations. Its mobile games have garnered 1.5 billion worldwide installs, and nine Disney franchise games have raked in sales of more than $1 billion.
Separately, Disney has announced a new share buyback program to repurchase up to 400 million shares. It plans to buy back shares worth $3 billion in Fiscal Year 2024.
What Is the Prediction for Disney Stock?
This slew of developments has already sent Disney shares nearly 7% higher today. Overall, the Street has a Strong Buy consensus rating on Disney, and the average DIS price target of $108.71 implies a 9.6% potential upside in the stock.
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