DIS - Disney: Bob Iger Is Serious About A Comeback

2024-02-15 18:53:14 ET

Summary

• Disney CEO Robert Iger is motivated to position Disney for the next cycle of the streaming wars.
• The market is optimistic due to solid numbers and potential catalysts.
• Disney should aggressively attack their debt load, but it is nevertheless in good financial shape, with better free-cash-flow prospects.
• Disney's assets make it a long-term buy, but investors will pay a premium in the short-term for this name; therefore, buy on price dips whenever possible.

Without a doubt, The Walt Disney Company ( DIS ) CEO Robert Iger wanted the company's shares to see some sort of energetic reaction to Q1 stats reported on February 7, 2024. (Hey, he and I both, as we're both long the stock.) How else does one explain the lengthy bullet-point list at the beginning of the release ? As well as the announcement about the sports-streaming deal with Warner Bros. Discovery ( WBD ) and Fox ( FOX ) ( FOXA ) the day before?

Well, the shares did see a pop of well over 6% at the time in the after-hours followed by an 11.5% rise in the regular session (with a spike in volume, as expected). And there's good reason for the market to be optimistic...some of the main numbers were more than solid, and there are a couple potential catalysts in the mix....

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