Normally when we hear about media giant Disney (NYSE:DIS) these days, it’s in connection to video streaming or, sometimes, theatrical releases that will eventually go to streaming. But what about the parks? Well, they’ve got a new policy out, and it’s not sitting well with visitors. Investors aren’t happy either, and shares are down fractionally in Wednesday afternoon’s trading.
Disney rolled out a new plan known as the “Lightning Lane Multi Pass” that will allow guests to schedule a seat on rides up to a week in advance, which sounds downright shocking but makes a kind of sense. It’s designed to save guests some time; after all, during peak travel season—which we’re basically in—Disney guests might wait up to 85 minutes for some rides.
However, the part that’s irking guests is that Lightning Lane Multi Pass reservations will, at last report, only go to guests of Disney Resort properties. Regular—or perhaps lesser—guests will get to book three days in advance. Early word says the new system is cumbersome and often restricts certain rides from even being reserved.
Meanwhile, in Streaming…
Disney may have a new legal battle on its hands thanks to its streaming properties. As we know, Disney owns both ESPN and Hulu, and they’ve been selling bundle packages for some time now. Unfortunately, this is proving legally problematic, as a federal judge is allowing antitrust claims against Disney for its multi-armed streaming platform ownership to go forward. However, YouTube TV subscribers who were hoping to receive compensation for damages won’t get any.
Is Disney a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 20 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 14.9% rally in its share price over the past year, the average DIS price target of $128.92 per share implies 26.39% upside potential.
