It’s a bad time to be Disney (NYSE:DIS) right now. With multiple strikes all but shutting down content production, a fundamentally altered distribution model hampering impact for what content there is, and the theme parks finding it difficult to get people in the gates, Disney’s troubles range the gamut. Now, Disney is taking a look at some new options, a point which is giving it a little extra life with investors. Disney stock is up fractionally in Tuesday afternoon’s trading.
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The latest move from Disney is pretty much everything that the Writers Guild of America—and even the Screen Actors Guild—was afraid of. Disney has established a “task force” to see how artificial intelligence can be used company-wide. While that doesn’t necessarily mean that the task force will find that AI can replace writers and actors on at least some level, it’s a safe bet that such uses will come up. The task force has been around since before the strikes, but it was already working on developing AI applications within the company, and setting up partnerships with new startups in the AI space. Some options will have little bearing on employment; one featured using AI to create an attraction called “Baby Groot”, which featured a robot that behaved like the character from “Guardians of the Galaxy” would.
With AI still a new—and thus controversial—platform, such a force is a good plan. After all, any move in artificial intelligence is closely scrutinized these days. The writers and actors already went on strike over it. The Pope himself just called for restraint in AI development, ensuring that AI “..be at the service of humanity and the protection of our common home.” Meanwhile, with Disney clearly beleaguered by a string of issues and even mild scandals, there are signs new buyers may be on tap, including Apple (NASDAQ:AAPL) and even Blackstone (NYSE:BX).
Despite the issues, Disney’s resilience and diversification leaves it a plus with analysts. With 13 Buy ratings, six Hold and two Sell, Disney stock is considered a Moderate Buy by analysts. Further, with an average price target of $115.11, Disney stock offers investors a 31.63% upside potential.
