Disney is one of the world’s largest and most recognized brands, dominating everything from theme parks to movie screens. So, a fan or not, why not consider investing in the company stock? Keep reading as we summarize the most important facts about the company, as well as explain how to buy Disney stock, and give an overview of the best brokers to use.
Intermediate Traders and Investors
What is Disney?
The company operates in the following business segments:
- Studio Entertainment: Walt Disney Studios, which includes Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Lucasfilm Marvel Studios, 20th Century Studios, 20th Century Animation, and Searchlight Pictures;
- Linear Networks: ABC broadcast network as well as cable television networks such as Disney Channel, Freeform, ESPN, FX, and National Geographic;
- Parks and Experiences: Theme parks (Disney World, Disneyland) and resort hotels in Florida, California, Hawaii, Paris, Hong Kong, and Shanghai, as well as a cruise line and vacation club;
- Direct-to-Consumer: Streaming services including Disney+, Star+, ESPN+, Hulu, and Hotstar;
- Consumer Products: Disney merchandise;
- Content Sales and Licensing: Content sales to third-party services, theatrical distribution, home entertainment distribution, etc.
Notably, the impact of the COVID-19 outbreak varied massively across Disney’s different business holdings, boosting its isolation-focused interests (e.g., streaming, tv networks) and devastating areas that involve mass gatherings (e.g., theme parks, cruise ships, film releases).
Yet, as demonstrated in the chart below, though social distancing policies and lockdowns had serious adverse effects on the Parks & Experiences segment of Disney’s business, it has since bounced back from its slump. Moreover, as expected, Linear Networks have kept delivering steady results, and continued growth can be seen in the Direct-to-Consumer business. In fact, the fiscal year 2022 saw Disney revenues climb to $82.7 billion, up from $69.6 billion in 2019, the last pre-pandemic year.
Indeed, the pandemic forced Disney to double down on its Direct-to-Consumer business, with Disney+ at the heart of that strategic shift. Now with 164 million subscribers, three years since its launch in November 2019, the platform is in a solid position in the streaming wars against Netflix (NASDAQ: NFLX) and Amazon (NASDAQ: AMZN), which have long divided the video streaming pie amongst themselves.
You can acquire DIS stock via multiple brokers, which we will overview later in this guide.
How to buy Disney stock? Step-by-step process
Public since 1940, Disney trades on the New York Stock Exchange (NYSE) under the ticker DIS and has been a component of the elite Dow Jones Industrial Average since 1991.
Disney is a publicly-traded company, which means you can buy DIS stock through a broker. The steps involved in purchasing Disney shares are summarized in detail in the following section.
Buy stock directly from Disney
Step 1: Choose a broker
To buy Disney stock online, you’ll need a brokerage account. While several platforms are available, the one that suits you will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When assessing brokers, consider the following features:
- Fees: Brokerage fees are a type of fee collected by brokers to execute your transactions or provide specialized services. Fortunately, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
- Security: Pick a trustworthy broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC);
- Trading tools: Active traders may prefer brokerage accounts with all the bells and whistles. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s typically a good idea to look for a user-friendly platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
- Access to market data: You should search for a platform that allows access to solid market research and reporting tools to help you trade confidently with updated data;
- Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; especially helpful for investors who don’t have unlimited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy.
Traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors.
Where can I buy Disney stock?
Thanks to various online brokers, access to the stock market has never been more accessible as well as affordable. However, choosing the right broker optimized for your needs (investing goals, educational tools, trading style) is critical for a stress-free trading experience.
To securely invest in Disney and buy DIS stock, consider these brokers:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Intermediate Traders and Investors
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
Low cost investing
Step 2: Fund your account
Once you have decided on a broker, it’s time to fund your account. Remember, it can sometimes take up to three days for the money to reach your account.
Step 3: Research the company
Before investing in Disney, you’ll want to research the company’s financials to better understand its performance, risks, competition, and prospects. Fortunately, as a publicly traded company, Disney’s quarterly (form 10-Q) and annual (form 10-K) earning reports, SEC filings, founders’ letters, product and business updates, as well as recent press releases can be accessed directly from its investor relations section.
After weighing both the expected risks and rewards, decide whether you want Disney stock as part of your investment portfolio.
Step 4: Decide how much you want to invest
Now that you’ve decided that Disney stock is the right choice for you, you’ll need to determine how much you want to invest.
The amount of money you invest will ultimately depend on the stock price and the number of shares you want to buy. If the share price of a stock you’re interested in is financially out of reach, you can also explore fractional shares. Fractional shares allow you to purchase shares on the dollar amount you’re comfortable with, so you may end up with less than a whole share, a whole share, or more than a whole share.
Because investing can have unpredictable returns, it’s essential only to invest what you can afford to lose and to be mindful of your risk appetite.
Step 5: Place your order and buy Disney stock
Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy Disney stock and how much you can invest, and they’ll do it for you. If using a brokerage account, simply log in and enter the ticker DIS in the search bar.
There are a few different execution options to choose from, including:
- Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
- Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy DIS stock at $110 or lower. You would then set the limit price at $110, and the order will only execute when the stock reaches the set price or lower;
- Options contract: Options speculation allows for leveraged positions in a security at a fraction of the cost of the underlying asset. A call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. Remember, derivative instruments can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts.
Step 6: Monitor your investment
Even with a blue-chip stock like Disney, you want to keep sporadically checking its performance. A solid method to gauge how your investment in DIS measures up to the rest of the market is by comparing its performance to that of a benchmark index, such as the S&P 500. Additionally, you can keep an eye on its financials by checking the same annual and quarterly reports you used to conduct your preliminary research.
So, while “set it and forget it” is a solid strategy for a diversified portfolio of ETFs, for single stocks like DIS, investors should keep a close watch on press releases, company health indicators such as revenue and net income, overall entertainment industry performance as well as economic factors such as interest rates. Then, depending on your financial goals, use that knowledge to reassess whether it’s best to hold onto the stock or sell it.
You may also want to track the performance of similar stocks in the industry for comparisons. Unfortunately, because Disney’s assets are so diversified, it faces an exceptionally vast number of competitors, including Comcast Corp. (NASDAQ: CMCSA), Paramount Global (NASDAQ: PARA), AT&T Inc. (NYSE: T), Sony Group Corp. (NYSE: SONY), Netflix Inc., Apple Inc. (NASDAQ: AAPL), and Amazon.com Inc. In addition to smaller niche rivals, such as theme park and resort establishments like Six Flags Entertainment Corp. (NYSE: SIX), SeaWorld Entertainment Inc. (NYSE: SEAS), and Hilton Worldwide Holdings Inc. (NYSE: HLT).
Disney stock price today
Should I buy Disney stock?
Besides looking at Disney’s fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts.
This gauge displays a real-time technical analysis overview for your specified timeframe. It can be a valuable technical analysis tool for many traders by simplifying trading decisions by demonstrating the real-time recommendations of popular technical indicators such as moving averages and oscillators.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing in stocks
Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:
- Not performing your due diligence on the stock;
- Having unclear financial goals;
- Attempting to time the market;
- Failing to diversify;
- Letting your emotions rule the investment decision-making process.
How to sell Disney stock?
You can sell Disney stock if you see the company performing differently than expected or after reaching your desired financial goal.
If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.
Pros and cons of buying Disney stock
Before you buy Disney stock, take into account both the pros and cons of Disney’s business:
- Diversified operations: Though most widely known for its animation business, it has since expanded into new markets, including theme parks, merchandise, live entertainment, cruise lines, resorts, TV broadcasting, and streaming services;
- Successful streaming platforms: Disney offers various streaming services as well as a bundle option (Disney+, Hulu, and ESPN+), making it stand out from its competitors;
- Blue-chip stock: These large-cap stocks are as reliable as an equity investment can be;
- Solid financials: The company has remained firmly on its feet even through the thick of the coronavirus pandemic
- Fierce competition: Disney’s streaming services face stiff competition from industry heavyweights such as Netflix and Amazon Prime Video. And while Disney+ has grown subscriber numbers rapidly, it has come at the cost of exorbitant operating losses;
- No dividends: Disney does not pay dividends to its shareholders.
Important: If you want to buy Disney stock, we recommend you always do your research. Before making trading decisions, examine the latest news, technical and fundamental analysis, and expert sentiment.
Even if theme parks or animation aren’t your cup of tea, there’s a good chance some of your money already flows into Disney’s pockets. The conglomerate owns a myriad of entertainment brands, including Hulu, Marvel Studios, and Lucasfilm (to name a few), placing it in an enormously advantageous position as subscription-based streaming services shift from a trend into an economic mainstay.
As a result, and because of its blue-chip status, Disney is among the safer stocks to buy in the long haul. Still, stocks are risky assets, so, as always, remember to do your own independent research and have sound risk management tools in place before entering the market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Disney
What is Disney?
Disney is a diversified global mass media and entertainment conglomerate that operates theme parks, movie studios, television networks, streaming platforms, and more.
How to buy Disney stock?
Disney is a publicly-traded company, and its stock is available on the NYSE exchange under DIS, which means you can buy shares of Disney through your brokerage account.
Is Disney a good stock to buy?
Whether Disney is a good stock to buy or a suitable investment should be based on your risk tolerance, portfolio size, financial goals, and market experience. So always conduct your due diligence before trading. Also, note that past performance doesn’t guarantee future returns.
Where can I buy Disney stock?
You can buy Disney stock at various online brokers such as Interactive Brokers (IBKR) and eToro.