Entertainment giant Disney (DIS) has the Super Bowl in 2027. You may have already heard this point several times by now. But Disney started to sell ads for this major cultural touchstone event, and demanded high prices for such ads. Ad buyers pushed back…and Disney relented, lowering its prices. Investors were not pleased, and sent Disney shares down over 2.5% in Friday’s trading.
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Disney was asking $10 million for a 30-second spot on the big game, and also wanted a $10 million “match” for other inventory connected to the broadcast. This proved to be a bit too rich for ad buyers’ blood, and Disney apparently figured better a portion of something than all of nothing, as Disney soon proved willing to negotiate.
Reports note that Disney has sold over 10 30-second spots for around $9 million each, and is willing to talk about the whole “match” thing as well. Basically, as one ad buyer put it, “Nobody was really jumping at that $10 million ask, or the ‘match.’ That was unrealistic.” Certainly, the product is valuable; most Super Bowl broadcasters have sold around half—between 40% and 60% of their ad schedule—ahead of upfronts. But there is only so far Disney can go, and it may have found that ceiling.
Leaning on the Muppets
Meanwhile, Disney is also putting a lot of faith in the Muppets. And not without reason, as the Muppets have reliably put on top-notch shows for decades. But the Muppets will have two new attractions at Disney’s Hollywood Studios, one for food, and one for a ride. First, there will be “FØØD by Swedish Chef,” which may not have the same explosive thrills of the original, but will feature such unusual fare as the Mayhem Soft-Serve Float, a Frozen Fanta Blue Raspberry and vanilla soft-serve float topped with cotton candy.
Disney also revamped the “Rock-n-Roller Coaster” to no longer involve Aerosmith, and replaced the band with the Muppets. Merchandise has already been prepared, from stickers to magnets to T-shirts aplenty.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 16 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 7.05% loss in its share price over the past year, the average DIS price target of $133.81 per share implies 29.97% upside potential.
