• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    The Bull Case For Dolby Laboratories (DLB) Could Change Following Peacock’s Full-Stack Dolby Adoption – Learn Why

    Simply Wall St·01/08/2026 03:26:55
    Listen to the news
    • In early January 2026, NBCUniversal announced that Peacock became the first streaming platform to adopt Dolby Laboratories’ full suite of advanced picture and sound technologies, including Dolby Vision, Dolby Atmos, and upcoming Dolby Vision 2 and Dolby AC-4, across movies, originals, and live sports.
    • This move highlights how a major streaming service is deepening its commitment to premium, bandwidth-efficient audio and video, potentially reinforcing Dolby’s role at the center of high-end entertainment experiences.
    • We’ll now examine how Peacock’s full-stack adoption of Dolby Vision, Atmos, and next-generation codecs could influence Dolby’s broader investment narrative.

    Find companies with promising cash flow potential yet trading below their fair value.

    Dolby Laboratories Investment Narrative Recap

    To be comfortable owning Dolby, you need to believe that its premium audio and video formats remain embedded in how people watch films, sports, and TV across devices and platforms. Peacock’s end to end adoption of Dolby’s stack is directionally positive for that thesis, but does not by itself remove near term concerns around commoditization in core consumer electronics or growing competition from alternative codecs.

    The most relevant recent announcement alongside the Peacock deal is Dolby’s 2026 guidance, which outlines expected licensing revenue between US$1,285 million and US$1,335 million. For investors, the key question is how quickly new content and distribution wins like Peacock, cinemas adopting Dolby Vision and Atmos, and expansions in automotive can offset slowing, more cyclical foundational segments.

    Yet investors should also be aware that increasing use of alternative or royalty free codecs could...

    Read the full narrative on Dolby Laboratories (it's free!)

    Dolby Laboratories' narrative projects $1.5 billion revenue and $334.6 million earnings by 2028. This requires 4.0% yearly revenue growth and about a $70 million earnings increase from $264.3 million today.

    Uncover how Dolby Laboratories' forecasts yield a $90.50 fair value, a 40% upside to its current price.

    Exploring Other Perspectives

    DLB 1-Year Stock Price Chart
    DLB 1-Year Stock Price Chart

    Five Simply Wall St Community fair value estimates for Dolby span roughly US$47 to US$233 per share, underlining how far apart individual views can be. As you weigh those opinions, Peacock’s commitment to Dolby’s full suite of technologies highlights how content adoption trends may influence Dolby’s ability to offset pressure from commoditization and competing formats over time.

    Explore 5 other fair value estimates on Dolby Laboratories - why the stock might be worth over 3x more than the current price!

    Build Your Own Dolby Laboratories Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Curious About Other Options?

    Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.