Core Insights - Cancellation rates for streaming services doubled in September compared to August [1] Group 1 - The increase in cancellation rates indicates a potential shift in consumer behavior within the streaming industry [1]

Here's what investors should look out for when the House of Mouse reports quarterly earnings on Nov. 13. ...

Core Viewpoint - The Walt Disney Company is raising prices on most of its park passes, a move that has become an annual tradition during the holiday season [1][4]. Pricing Changes - Disney World's top-tier 1-Day 1 Park Per Day tickets for November and December 2026 will exceed $199, reaching up to $209, while prices will remain between $119 and $199 until October 2026 [2]. - At Disneyland, ticket prices for peak times like Thanksgiving week will increase from $206 to $224, although the lowest-priced ticket has remained at $104 since 2019 [3]. Reasons Behind Price Hike - The price increase is intended to offset rising wages and operational costs, as well as to support ambitious upgrades and expansion plans, including new attractions at Animal Kingdom and a Villains-themed expansion at Disney World [4]. Company Overview - The Walt Disney Company, founded in 1923, operates in three segments: Entertainment, Sports, and Experiences, and has a market capitalization of approximately $197 billion [5]. - DIS stock has experienced volatility, with shares down 4% over the past month and 9% over the past three months, influenced by the temporary suspension of Jimmy Kimmel's show and subsequent cancellations of Disney+ and Hulu subscriptions [6].

Group 1: Price Increases and Strategy - Disney plans to raise prices for its streaming services on October 21, with the ad-supported Disney+ plan increasing by $2 to $11.99 monthly, and the premium no-ads version rising by $3 to $18.99 monthly. Annual subscribers will see a $30 increase to $189.99 [1] - Bundle packages combining Disney+, Hulu, and ESPN will also see a $3 monthly increase. This marks the second consecutive October that Disney has raised streaming prices, with last year's increases being smaller at $1 to $2 per plan [2] - The price hikes indicate management's ongoing effort to enhance streaming profitability, with the key question being whether subscribers will accept these increases or opt to cancel and resubscribe based on content availability [4] Group 2: Industry Trends and Consumer Behavior - Research from Deloitte shows that households now pay an average of $69 per month for streaming services, reflecting a 13% increase from the previous year. Despite 60% of consumers indicating they would cancel their favorite service after a $5 price increase, many still consider streaming essential [3] - The streaming industry is shifting focus from acquiring new subscribers to retaining existing ones through bundling and exclusive content [3] Group 3: ESPN's Transformation - Disney is transforming ESPN into a comprehensive digital sports platform, launching a direct-to-consumer ESPN service at $29.99 monthly, which includes all 12 ESPN networks and over 47,000 live events [6] - Disney is adopting a hybrid approach by maintaining traditional cable services while expanding its digital offerings to cater to sports fans [6] - An expanded partnership with the NFL will see Disney acquire NFL Network and RedZone in exchange for a 10% stake in ESPN, increasing the number of NFL games available on ESPN from 22 to 28 game windows [7]

Core Viewpoint - The analyst from Rosenblatt maintains a positive outlook on Disney's streaming segment, anticipating strong fourth-quarter results and a boost in stock performance [1][2]. Streaming Segment - The new ESPN streaming platform is expected to reach approximately 500,000 subscribers in its first launch quarter and two million by the end of fiscal 2026, potentially generating nearly $500 million in new revenue in 2026 [3][4]. - Disney+ is projected to add around 500,000 net new domestic subscribers in the fourth quarter, with a potential 15% increase in average revenue per user due to planned price hikes [5]. Financial Performance - The analyst has raised estimates for fourth-quarter earnings per share and fiscal 2026 earnings per share, indicating a positive trajectory for revenue and earnings driven by streaming and parks [3]. - The Experiences segment is expected to see a 7% year-over-year revenue increase in the fourth quarter [6]. Stock Performance - Disney stock has shown positive movement, increasing by 1.2% to $111.15, with a year-to-date increase of 0.3% in 2025 [6].

Executive Appointments - The Walt Disney Company appointed Michael Moriarty as executive vice president and chief financial officer of Disney Experiences, overseeing theme parks, resorts, and cruise ships [2] - Ulta Beauty named Christopher DelOrefice as finance chief, who will start on December 5, succeeding interim CFO Chris Lialios [3] - Liquid Death hired Ricky Khetarpaul as chief financial officer, succeeding Karim Sadik-Khan, who left for another beverage company [4] - TD Bank appointed Andre Ramos as U.S. chief financial officer, effective December 1, transitioning from JPMorgan Chase [5] Background of New CFOs - Michael Moriarty has nearly two decades of experience at Disney, previously serving as CFO at Walt Disney Imagineering and Hong Kong Disneyland Resort [2] - Christopher DelOrefice has over 20 years of experience in finance leadership roles, including at Becton Dickinson and Johnson & Johnson [3] - Ricky Khetarpaul has a strong background in finance, having held positions at Health-Ade, Sabra Dipping Company, and PepsiCo, where he managed a beverage portfolio exceeding $5 billion [4] - Andre Ramos has 11 years of experience at JPMorgan Chase in various business CFO roles, including consumer banking CFO [5]

Core Viewpoint - Walt Disney's stock has experienced a decline in recent trading sessions, and upcoming earnings are anticipated to show a year-over-year decline in earnings per share. Group 1: Stock Performance - Walt Disney closed at $109.88, reflecting a -1.64% change from the previous day, underperforming the S&P 500's loss of 0.63% [1] - The stock has decreased by 3.78% over the past month, compared to a loss of 3.5% in the Consumer Discretionary sector and a gain of 0.92% in the S&P 500 [1] Group 2: Upcoming Earnings - Walt Disney is set to release its earnings report on November 13, 2025, with projected earnings of $1.03 per share, indicating a year-over-year decline of 9.65% [2] - Revenue is expected to be $22.92 billion, reflecting a 1.51% increase from the prior-year quarter [2] Group 3: Full Year Estimates - For the full year, earnings are projected at $5.87 per share, showing an increase of 18.11%, while revenue is estimated to remain flat at $94.84 billion [3] - Recent revisions to analyst forecasts may indicate shifting business dynamics, with positive revisions suggesting optimism about the business outlook [3] Group 4: Valuation Metrics - Walt Disney's Forward P/E ratio is currently 17.24, which is lower than the industry average of 18.11 [6] - The company has a PEG ratio of 1.47, compared to the Media Conglomerates industry's average PEG ratio of 2.6 [6] Group 5: Industry Context - The Media Conglomerates industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 187, placing it in the bottom 25% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Disney's stock has underperformed the market despite a recent turnaround in its streaming business, with a notable operating profit reported in the latest quarter [2][4]. Group 1: Stock Performance - Disney's stock is down just over 1% this year and has underperformed the market significantly [1] - The stock gained 23% in 2024, aligning with the S&P 500 Index, but has lagged behind the broader market in the previous three years [1] Group 2: Company Turnaround - Since Bob Iger returned as CEO in November 2022, Disney has initiated a transformation plan that has positively impacted its streaming business, which reported an operating profit of $346 million in the most recent quarter [2] - This is a significant improvement from an operating loss of nearly $1.5 billion in fiscal Q4 2022 under former CEO Bob Chapek [2] Group 3: Challenges Facing Disney - Disney is facing challenges such as low tourist arrivals in the U.S. due to immigration policies, which have deterred potential theme park visitors [4] - Concerns about a slowdown in consumer spending may affect traffic at Disney's theme parks [4] - The linear TV business continues to experience structural decline, adding to the company's challenges [4] Group 4: Analyst Sentiment - Sell-side analysts maintain a positive outlook on Disney, with a consensus rating of "Strong Buy" from 28 analysts [6] - The mean target price for Disney's stock is $136.38, representing an increase of over 22% from the closing price on October 15 [6] Group 5: Streaming Business Outlook - Disney's streaming business has become profitable, but margins remain low, with expectations to achieve double-digit margins similar to Netflix [7] - The company plans to increase prices for its streaming service effective October 21, which is expected to enhance profitability in that segment [7]

Core Insights - The discussion centers around the evolving partnership between Charter Communications and major content providers like Disney and AMC Networks, focusing on how they are adapting to changes in consumer behavior and preferences in the media landscape [3][4][46]. Group 1: Partnership Dynamics - Charter and Disney's negotiation led to a unique partnership that prioritizes customer experience, moving away from traditional renewal processes to a more integrated approach [7][8]. - The collaboration has resulted in a win-win situation for all parties involved, particularly benefiting the customer by reducing friction in accessing content [6][8]. - AMC Networks has successfully integrated its services with Charter, leading to over 850,000 activations for the AMC Plus app through the Spectrum package [26]. Group 2: Market Trends and Consumer Behavior - The media landscape is shifting, with a notable decline in traditional cable subscriptions, prompting companies to rethink their strategies [21][49]. - There is a growing emphasis on direct-to-consumer (DTC) models, with companies like ESPN focusing on enhancing their app offerings to retain and attract subscribers [30][31]. - The importance of bundling services is highlighted, as many consumers prefer packages that offer both traditional and streaming content [41][42]. Group 3: Technological Integration - Companies are leveraging technology to enhance user experience, such as personalized content delivery and interactive features within apps [94][96]. - The integration of advanced technology is seen as crucial for maintaining competitiveness in a market increasingly dominated by streaming services [100][101]. - Charter's network capabilities are positioned as a significant advantage in delivering high-quality content and services to consumers [103][104]. Group 4: Industry Challenges and Future Outlook - The industry faces challenges related to customer trust and perceptions of value, particularly in the context of traditional cable providers [57][58]. - There is a recognition that the future may involve a blend of traditional cable and streaming services, with companies needing to adapt to changing consumer preferences [68][69]. - The discussion suggests that while there may not be a clear floor for traditional cable subscribers, companies must continue to innovate and provide value to retain their customer base [50][51].

Core Insights - Ashva Capital Management's Q3 2025 portfolio returned 10.16%, outperforming the S&P 500's 7.79% return, indicating effective investment strategies [1] - The portfolio's gains have compensated for earlier declines, showing a positive year-to-date performance [1] Company Highlights: The Walt Disney Company (NYSE:DIS) - The Walt Disney Company reported a one-month return of -4.25% and a 52-week gain of 14.90%, with a closing stock price of $111.17 and a market capitalization of $199.876 billion as of October 14, 2025 [2] - In fiscal Q3 2025, Disney's total revenue increased by 2% year-over-year to $23.7 billion, with income before taxes rising by 4% and segment operating income climbing 8% to $4.6 billion [3] - Direct-to-consumer revenue grew by 6%, with streaming subscribers reaching 183 million, highlighting Disney's focus on monetizing content through upcoming services like ESPN direct-to-consumer and the integration of Hulu into Disney+ [3]