Could a “super-app” be the answer to Disney‘s (NYSE: DIS) lackluster growth?
At a recent investor presentation, newly minted CEO Josh D’Amaro revealed plans to unify the Disney experience into one digital application. From streaming to theme park bookings, merchandise, and other content, the new “super-app” will be personalized for the user while also bringing together all aspects of the Disney universe.
Image source: Disney.
Disney needs a new growth engine, and an all-encompassing app could do the trick.
Could a “super-app” be the answer to Disney‘s (DIS 3.06%) lackluster growth?
At a recent investor presentation, newly minted CEO Josh D’Amaro revealed plans to unify the Disney experience into one digital application. From streaming to theme park bookings, merchandise, and other content, the new “super-app” will be personalized for the user while also bringing together all aspects of the Disney universe.
Image source: Disney.
A unified platform could enable Disney to engage users more deeply and cross-sell its various brands and offerings. A Disney ecosystem in the palm of one’s hand is a powerful growth engine.
This ambition is not without risk. A superb user experience is a must, and any stumbles in adoption could deeply affect shareholders. There’s always the chance that Disney consumers will find this approach annoying.
Walt Disney
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Disney is in need of a new, higher-growth chapter, and it looks like D’Amaro is focused on doing just that. Disney’s stock is down about 7% year to date, but it has really stumbled over the past five years, down more than 42%. The company’s forward price-to-earnings (P/E) ratio of 16 indicates the stock is currently fairly priced.
If the entertainment giant can successfully execute upon its new “super-app,” the potential upside could be just what Disney’s investors have long awaited. D’Amaro is a seasoned Disney veteran, and I think this new app is a great idea if done well. Right now, Disney stock could be a potentially strong long-term buy for investors.
