Disney stock is up 30% this year. is it too late to buy?

Walt Disney (NYSE: DIS)Shares hit a near-decade low last year, down 60% from their all-time high, but things are looking up, and so far this year, Disney shares are up 30%. Is it too late to buy Disney stock?

Everything's going well at the Mouse House.

Disney is a huge, multi-layered enterprise. When all the pieces work together, Disney is a powerful enterprise. It has an unparalleled library of content and a creative team that consistently delivers hits based on beloved characters and franchises that are used to enrich Disney's media channels, build theme park attractions and develop new feature films.

However, because Disney has so many components, it is not always possible for all of them to work together. Where one part goes wrong, the other parts work better. This happens in the early stages of a pandemic, when the parks are closed and the vectors are on the rise, and conversely, when the vectors begin to saturate and the parks reopen, the demand is high.

It takes some skill and good organization to make sure everything runs smoothly. Over the past few years, the company has been under pressure in many areas, and investors have lost confidence in the management. But the situation has begun to change with the return of Bob Iger, the matron executive. He is committed to investing in the parks, which are the backbone of Disney's business, and the company has made significant progress toward its goal of streaming profitability. Disney is reevaluating its licensing strategy as several of its movies didn't perform as well as expected at the box office last year, and Iger is giving the creative team more control over the content to rekindle its magic.

Obstacles remain

Investors have been impressed by the recent quarter's results and the stock price has risen accordingly. While there is no Disney magic in the numbers, the company is moving in the right direction. revenues were flat year-over-year in the first quarter of fiscal 2024 (ended December 30, 2023), but operating income increased 27% year-over-year, and adjusted earnings per share (EPS) increased from $0.99 in fiscal 2022 to $1.22 in fiscal 2023. The most notable improvement was in the loss of the streaming media business, which shrank from US$984 million in 2022 to US$138 million in 2023. Iger maintains that the streaming business will turn around by the end of fiscal 2024, and this quarter proves it.

The company is also considering what to do with ESPN, which has been a thorn in Disney's side for some time, as the cable channel would collapse if it switched to streaming altogether. The company is in partnership withVitonix, Inc.respond in singingWarner Bros. Discovery ChannelA deal was signed to launch a full sports channel for $50 a month. This will attract true sports fans who are willing to pay a premium for live racing, and the inevitable loss of cable subscribers will be mitigated.

Things are looking up for Disney.

I want to reiterate that these are great updates, but they represent potential rather than reality. Streaming media is still unprofitable and ESPN has yet to launch this new platform. Movie studios are still planning, developing and producing new content in hopes of attracting more money.

Investors are betting that these things will happen the way Mr. Koon says they will. Iger, who has a great track record and probably knows more about Disney than anyone else in the world, has earned the confidence of investors.

Although Disney's stock price has risen this year, it is still 40% off its 2021 high. If Disney delivers on its promises and plans, the stock should continue to climb. In the long run, Disney stock can create value for shareholders, so it's not too late to buy.

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Jennifer Saibil owns shares of Walt Disney.The Motley Fool owns shares of companies that recommend Walt Disney and Warner Bros Discovery.The Motley Fool has a disclosure policy.

Disney Stock Is Up 30% This Year: Is It Too Late to Buy? This post was originally published by The Motley Fool.