Entertainment giant Disney (DIS) has its share of flops like any other studio. But a new report out from Forbes detailed how big of a flop a recent Pixar spinoff turned out to be. The news did little to impact shareholders, though, and Disney shares added 1.71% in Thursday afternoon’s trading.
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While Disney movies tend to be costly affairs—the biggest franchises can run into the $250 million range for budgets—some are less costly than others. But there was one title that did not fare so well: Planes. Planes was set in the same universe as Cars; it was even specifically billed as “the world above Cars,” and was about aircraft in the same way that Cars was about land vehicles.
As a computer-graphics focused title, it did cost less than normal. And it brought in $240.2 million by itself. That led to two sequels, the third of which was to be called Space. But Space came out at quite the wrong time, and got canceled outright. That led to a loss of $34.7 million for Disney, the reports noted. The loss took place in 2018, but only recently emerged.
Embracing Optimism and Floating Theme Parks
Meanwhile, a Fortune report featuring Rita Ferro, Disney’s president of global advertising, focused on the value of focusing on optimism. That may not always be the way to go, but sometimes, staying optimistic about the future can lead to better things. Ferro pointed out that advertisers around the world are often looking for the same key things: people to find out about their product and buy it. Embracing optimism, meanwhile, helps Ferro make those sales and keep streaming and linear television making money.
And optimism will be a good tool to have on hand as Disney works on what a Bloomberg report called a “floating theme park.” That is the term being used to describe the Disney Adventure cruise ship, which will come with a range of rides both on and in the ship. This includes the Ironcycle Test Run, which is currently considered the “largest rollercoaster at sea.” It measures a whopping 820 feet and runs around the ship’s deck. The vessel is drawing attention from wealthy Asian customers in particular, reports note.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 17 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 19.46% rally in its share price over the past year, the average DIS price target of $126.84 per share implies 14.24% upside potential.
