Disney (DIS) Partners With Dapper Labs To Launch NFT Platform

disney DIS recently announced its partnership with Dapper Labs to unveil a non-fungible token (NFT) platform called Disney Pinnacle. The platform is designed to feature figures from the Pixar and Star Wars universes, as well as DIS’s timeless animated characters. These characters will be turned into collectible and tradable digital pins on the NFT marketplace.

Launching later this year, Disney Pinnacle aims to enable fans around the world to collect dynamic Pins on their mobile devices and securely trade them with others globally. The platform is built on layer-1 blockchain Flow developed by Dapper Labs. The platform will be available on Apple App Store for iOS, Google Play Store for Android and on the web.

A strategic shift follows DIS’s restructuring initiative earlier this year, where the company spun off its Metaverse division as a cost-cutting measure. Despite shutting down the Metaverse division, Disney is now actively entering the NFT sphere in collaboration with Dapper Labs. This is expected to help the company’s revenue growth in the coming quarters.

The Zacks Consensus Estimate for DIS’s 2023 revenues is pegged at $92.49 billion, representing growth of 4.04% year-over-year. The Zacks Consensus Estimate for earnings is pegged at $4.53 per share, which represents an increase of 20.48% year-over-year.

Walt Disney Company Value and Consensus

The Walt Disney Company Value-Consensus-Chart | walt disney company quotes

Disney will face tough competition in the NFT market

According to a report by Statista, revenue from the NFT market is expected to reach $3,162 million by 2027, which will see a compound annual growth rate of 18.55%. The number of users in the NFT market is expected to reach 19.31 million by 2027.

Shares of Disney, which currently carries a Zacks Rank #3 (Hold), have gained 8% year to date, while the Zacks Consumer Discretionary sector has gained 8.1% due to competition. Amazon AMZN, Alphabet Google and Microsoft MSFT.

You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Amazon NFT marketplace has the potential to engage a wide audience, including AMZN’s existing customer base. Leveraging the trusted Amazon brand builds trust among users, providing a safe and trustworthy environment for NFT transactions. It has a diverse range of NFTs and the marketplace is set to include digital art, music, and collectibles.

Google has made significant progress in embracing the NFT revolution by enabling the sale of NFTs within Play Store apps and games. This development marks progress in the widespread acceptance of NFTs, creating new opportunities for developers, creators, and users to interact with unique and verifiable digital assets. This will allow smaller developers to enter the NFT market and increase the total number of transactions.

Microsoft has introduced an online game that offers players NFTs as rewards, which can be used minecraft, one of the most famous sports globally. These NFTs, obtained through gameplay, enable players to access a new quest within the MyMetaverse Minecraft servers. Through the EnjinCraft plugin, users can later bring Microsoft Azure Heroes into the popular game.

Demand for NFTs has been slowing down recently and with the presence of larger competitors it will be difficult for Disney to establish its own audience. Dapper Labs’ past few failed projects don’t bode well for the prospects of this partnership.

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