Shares of the entertainment giant, down 44% in 2022, have long-term potential

Since its establishment in 1923, disney (Insurance 0.91%) has become entertainment for all ages, and its success is reflected in the performance of its stock. Since its debut on the New York Stock Exchange (NYSE) in 1957, Disney has delivered consistent returns to investors over the past few decades, thanks in large part to its adoption of cutting-edge technology.

However, Disney stock has been struggling lately. House of Mouse stock has fallen more than 19% over the past five years, losing about 44% of its value in 2022 alone.

However, I believe there is still hope and a lot of room for growth in Disney stock. Of course, economic uncertainty and recession fears have had a negative impact on the stock market, and Disney is clearly not immune. But despite this, the entertainment giant remains committed to delivering innovative entertainment in new and innovative ways.

In 2022, Disney has made strides in creating digital experiences for consumers. As people spend more time with their devices and new technologies become more accessible, Disney is acutely aware of the need to develop a business model to ensure it remains competitive.

Based on recent developments, Disney appears to have plans in place to mine Metaverse, Web3blockchain and augmented reality have to offer.

Disney fills new roles

Last year, Disney created several new jobs to ensure the company has the resources to build out its entertainment arsenal. One such position is senior vice president of next-generation storytelling and consumer experience. Those in this role will be responsible for tapping into the potential of the Metaverse, blockchain, and augmented reality. A vacancy for a Vice President position is also posted.

Then in September, seen as a move to ensure its legal footing was secured, Disney posted a job opening for chief legal counsel, whose primary role would be to oversee legal matters related to corporate transactions in the Metaverse, non-fungible tokenand blockchain.

invest in the future

In my opinion, the strongest clues to what Disney’s future might look like come from this year’s accelerator program entrants. The accelerator program is Disney’s venture capitalist arm that invests in up-and-coming companies to help drive their growth. This year’s class is filled with businesses specializing in technologies such as blockchain, augmented reality, artificial intelligence and Web3.One of the most notable inductees is polygona blockchain has claim to fame Over the past few years, due to its utility in non-fungible tokens (NFTs) and Web3. Disney’s ultimate goal is to create some kind of mutual relationship, but that’s not guaranteed.

Disney enters the 21st century

While these newly created jobs and accelerator program entrants paint a clear picture of where Disney is headed, there’s still some murkiness about what exactly it will all look like.

Based on these developments, I imagine Disney’s future taking shape in various forms. It starts with a complete overhaul of the amusement park experience. With the help of augmented reality and artificial intelligence, rides may include new, digitally-based features, and visitors may be able to interact with characters from their favorite movies. Visitors can earn costumes or NFTs as they embark on a digitally-based Easter egg hunt around the park, using their devices as lenses to find hidden prizes.

Then there is the home experience. Disney fans who don’t go to amusement parks might be able to collect rare NFTs released on the anniversaries of their favorite movies, gain exclusive access to movies or experiences by using blockchain technology like smart contracts, and even buy on fresh Disney clothing.

The possibilities are truly endless, but it’s these types of ideas and conversations that take place in the Disney boardroom.

buy today, buy tomorrow

Building a position in Disney stock based on future developments that are still somewhat murky can be difficult right now. However, one key aspect of Disney’s business could provide some of the momentum needed to realize gains in 2023 — streaming.

When Disney reported they had lost roughly $4 billion on Disney+, it spooked investors, sending its shares tumbling amid an already unstable macroeconomic environment.but all this could be change this year. Disney plans to increase monthly subscription costs from $8 to $11. With their more than 160 million subscribers, their profit margins are likely to be close to breakeven. Even better, a 2019 Disney+ promotion that let customers prepay for the new streaming service for $4 or $5 a month ends this year. For those subscribers, that means nearly tripling prices and potentially adding more cushion to profit margins.

To quote former CEO Bob Chapek, the Metaverse and its associated technologies set the stage for Disney to deliver “the next great frontier of storytelling.” While it looks like Disney is going full steam ahead, it might take some time. Focusing on cutting some of the extra costs of streaming, Disney may be on the verge of turning the streaming platform into a lucrative part of its business this year.