“Can…Josh D’Amaro…Save the Magic Kingdom?”: Big Steps Face the New CEO, Disney Stock (NYSE:DIS) Gains

Entertainment giant Disney DIS +0.48% ▲ has a new CEO, and there are already very deep concerns facing Josh D’Amaro. He has a lot to fix right now at Disney, and some are already starting to wonder if the job is too big for any one CEO. Investors are prepared to give him the benefit of the doubt, at least for now, and sent Disney shares up fractionally in Thursday afternoon’s trading.

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So what is going on for D’Amaro right now? There is the growth of artificial intelligence (AI) that offers serious cost savings, but may well cripple any studio that uses it under the weight of consumer backlash. That does not even factor in what may happen if the regular consumer starts using it instead. Marvel is losing steam. The Star Wars franchise has not had a hit in quite a while, with even the upcoming trailer for The Mandalorian and Grogu getting what can be charitably described as mixed reactions.

This is not one big task; this is several big tasks that are all coming due all at once. But D’Amaro has one thing working for him, a thing some call “the Josh Effect.” D’Amaro has a gift for eye contact and making other people feel seen and heard. That is certainly no small gift, but will it be enough to turn doddering franchises into fan favorites and money-makers once more?

Building Goodwill

However, Disney might have a bit of goodwill building going on, as it teams up with the Indianapolis Children’s Museum to deliver “Tiana’s Joyful Celebration,” an event that starts in March and runs through to just after New Year’s Day 2027.

The event is built around a narrative of Tiana from The Princess and the Frog—Disney’s first Black princess—preparing for a special event in New Orleans. Along the way, the children who go through the exhibit will engage in a slate of hands-on activities designed to “help out” with the event. This is actually the third time the museum has collaborated with Disney, following events with Doc McStuffins and the Mickey Mouse Clubhouse. Since this event uses a theatrical release for its basis, it might be considered the biggest such event yet.

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 three Holds assigned in the past three months, as indicated by the graphic below. After a 5.62% loss in its share price over the past year, the average DIS price target of $135.41 per share implies 28.3% upside potential.

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