DIS - Disney Is Back On Track
2024-07-01 15:11:14 ET
Summary
- Disney stock is down after the proxy battle. The pullback offers a bargain opportunity to invest.
- Movies are back on track after a lackluster year (for Disney).
- Diversification allows other parts of the company to support struggling areas. This will smooth earnings when movies or streaming hit a profit bump.
- A fair chunk of the linear business is also managed by the same administrators who manage the streaming business. The overall objective is to grow the combined business.
- Most of the parks business is at record levels and the cruise ship business is booming as well.
Disney ( DIS ) stock is down after the proxy battle. That probably makes this a time to consider either adding to a position or initiating one. As the last article noted, the proxy battle win was important to keeping a unified and experienced team at the helm. But also, it was very likely that management had already resolved a lot of issues that caused the battle in the first place. Now the news is pouring in that movies are back on track after a lackluster year by Disney standards. This appears to go along with the idea that the rest of the business is doing unexpectedly well by market standards. That would imply some strong earnings and cash flow comparisons lie ahead, which would be very good for the stock price.
Movies
When movies hit a speed bump, there was an assumption that the whole company had a problem. But as Bob Iger , CEO, noted, other parts of the company continued to do well to help pick up the pieces and gain in importance until movies found their footing again....
Disney Is Back On Track