- As a conglomerate, although some of its business segments, like theme parks and cruises suffered significant losses, the other segments, including Disney+ has more than compensated during the pandemic.
- Disney has remained resilient through many challenges and is expected to continue in the same way.
The Walt Disney Company or Disney (NYSE: DIS) is a diversified multinational mass media and entertainment conglomerate. It was founded in 1923 and has its headquarters at the Walt Disney Studios complex in Burbank, California. Disney listed on the New York Stock Exchange in 1957.
This is your complete guide to buying shares in Disney from Australia.
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Disney operates in four key business segments: Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-To-Consumer (DTC) and International. The DTC businesses are made up of subscription services (Disney+) for video streaming of entertainment, family and sports programming. International Channels focus on producing local programs or acquiring rights from domestic studios and from third parties.
Disney music and films are distributed nearly everywhere around the globe. Its TV and radio channels reach audiences in nearly 165 countries. There are Disney theme parks and resorts in North America, France, Japan, China, India, and Hong Kong.
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Step 1: Select a broker
There are many online brokers available in Australia. Of the many things to consider when selecting a broker, these are the most important.
Many US share trading platforms offer this option. Trading without commissions can help you save money and means you can trade more frequently.
Fractional share investing
Fractional share investment means you can buy a fraction of the share rather than whole shares only. This opens up the opportunity to get invested in more expensive shares that would otherwise be out of reach.
A user-friendly way to trade
It doesn't have to be difficult to invest in shares. Look for a trading platform with an easy-to-use interface, ideally available on desktop and mobile.
Depth of research and analysis
It’s important to have good visibility across share price history, price projections, analyst reports, etc.
Step 2: Fund your trading account
Next, deposit funds into your account. Assuming you just opened a new trading account, it may take some time before the funds clear and you can start trading. The time it takes for the broker to conduct identity verification may also delay your ability to trade.
Step 3: Decide how much money to invest in Disney
It’s important to define how much you can afford to invest. This is best done as part of your overall budget. Whatever you invest, be prepared —emotionally and financially — to lose some or all of it.
Step 4: Decide between buying shares or investing in an ETF
ETFs, also known as exchange traded funds, are less appealing to active traders because they are managed. However, they are also regarded as a less volatile investment since they are diversified, comprising shares in many companies.
Many ETFs are exposed to Disney is, including iShares Core S&P 500 ETF and Vanguard Total Stock Market ETF.
Step 5: Configure your trade
You have the option to choose what and how much you wish to purchase. These order types allow you to define how much you are willing to pay and when you would like to sell.
While this guarantees your order will be fulfilled immediately, it does not guarantee its exact price.
Let's assume that Disney’s shares are currently trading at US$170 but the price drops to US$169 after you place an order. The price at which you buy Disney shares will be lower. However, the inverse also applies when prices go up.
This type of order allows you to automatically sell your shares at a fixed price. However, if the market is moving quickly against you, the order may not be executed if the price falls past your limit price.
Another way to protect your shares from losing money is to set a price to ensure you won’t lose if the price drops. For example, you can set a price at US$168 per unit. Your stop loss order will be executed automatically if the price falls below this level. Your order will be fulfilled at the next market rate.
Step 6: Purchase shares
After you have selected a broker, funded your account, and set up your order, it's time to place an order. This can be done easily via the app or website of your broker. You will get a notification if the order has been successfully placed.
Step 7: Track your investment
Once you invest in company shares, whether with a speculative motive or to hold for the long-term, you have to keep track of the company’s performance as well as its share price movements.
Track Disney’s performance
Keep watching the company’s performance and its stock fundamentals. You can do this through watching news stories, checking out its financials and keeping track of fundamentals.
Watch for developments in key sectors Disney operates in
Investing in diversified conglomerates that operate around the world, such as Disney, can be complicated. You need to watch for important developments across multiple sectors and markets.
Disney's largest competitors include Comcast (NASDAQ: CMCSA), ViacomCBS (NASDAQ: VIAC), Time Warner, 21st Century Fox, CBS Corp. and Discovery Communications, Charter Communications (NASDAQ: CHTR) and Sony (NYSE: SONY).
In the Parks and Experiences segment, the main Disney competitors in terms of attendance worldwide are Universal Studios Theme Parks & Resorts, Six Flags Entertainment (NYSE: SIX), Cedar Fair (NYSE: FUN) and SeaWorld Parks & Entertainment (NYSE: SEAS).