Is Disney a Stock to Buy in June?

The Walt Disney Company, an iconic name in entertainment, has been a staple in many investment portfolios for years. However, with the dynamic shifts in the entertainment industry and broader market conditions, many investors are questioning whether Disney is a stock to buy in June. This article provides an in-depth analysis of Disney’s current financial health, strategic initiatives, and market trends to help you make an informed investment decision.

What Happened to Disney Stock?

There's no June swoon for Walt Disney (DIS) this year. The media giant is keeping busy with a major theatrical release and bar-raising theme park experiences.

With Disney shares sliding in back-to-back months, the catalysts are there to bring back the bullishness. The arrival of new attractions in Japan and Florida comes just as the peak summer travel season kicks off. A new movie will be the first of three major animated features that Disney has slated for theatrical release by the end of the calendar year. Let's take a closer look at what to watch in the month ahead.

3 Dates Disney Stock Investors Should Mark in June

June 6

Tokyo Disney is the only resort that the House of Mouse neither owns nor holds a significant stake in. However, this doesn't mean investors should overlook the grand opening of Fantasy Springs. This $2 billion expansion at Tokyo DisneySea includes new attractions based on beloved franchises like Peter Pan, Frozen, and Tangled.

The resort is owned and operated by Japan's Oriental Land Company, but Disney still benefits from royalties and licensing fees. Additionally, the success of the resort’s two theme parks boosts interest in Disney products and future projects. This arrangement is advantageous for Disney: it profits from a $2 billion expansion without any direct investment while generating increased interest in three of its iconic properties.

June 14

Disney has been intentionally quiet at the multiplex since late last year, but it’s starting to make some noise again. The buzz began last month with Kingdom of the Planet of the Apes, currently topping $140 million in stateside ticket sales and $338 million worldwide, making it the studio’s biggest hit since July of last year.

There are half a dozen more potential blockbusters from Disney slated for release in the remainder of the calendar year. The next big draw will likely be Inside Out 2, which hits theaters next week. The first Pixar film raked in $357 million domestically and $858 million globally in 2015, and ticket prices have substantially increased since then.

However, there are reasons to be cautious. Fans know they will be able to stream it on Disney+ in a few months, which can limit sales and repeat viewings. Yet, with rival studios scoring the top animated films in 2022 and 2023, it’s time for the industry leader to reclaim the crown. If Inside Out 2 isn’t a hit, big numbers are still expected from the new Moana and Lion King films that Disney has slated for the potent holiday viewing season.

June 28

This month, it's not only Japan that's getting exciting new theme park experiences. At Disney World's Magic Kingdom, Tiana’s Bayou Adventure is officially opening on the site that once housed the Splash Mountain log flume ride. This revamped attraction retains the beloved water ride thrills but now features a fresh storyline and updated scenes inspired by Disney’s The Princess and the Frog.

In addition to this, Disney is introducing more exciting updates at the world’s most-visited theme park this summer. The classic Country Bear Jamboree is set to reopen with an all-new show, where the iconic singing audio-animatronic bears will perform Disney songs re-recorded with a country music twist.

With Tiana’s Bayou Adventure debuting this month and the refreshed Country Bear Jamboree show opening this summer, visitors will have new, entertaining ways to cool down as the temperatures rise. These additions follow the recent launch of the Tron Lightcycle Run roller coaster, which opened last spring. Looking ahead, Disney is expected to unveil more thrilling additions to its array of industry-leading theme parks at the upcoming D23 fan conference in California in two months.

Should I Buy Disney Stock Now?

While Disney faces certain challenges, its long-term prospects in streaming, theme parks, and entertainment provide a potentially attractive opportunity for long-term investors. However, it's crucial to consider your investment horizon and risk tolerance. Additionally, keeping an eye on broader economic conditions that might impact discretionary spending on entertainment is advisable.