WMT - Disney's Theme Park Vulnerability

2024-05-25 01:46:26 ET

Summary

• Parks/Cruises contribute more than half of earnings.
• A slowing economy can significantly impair earnings growth and share valuation.
• It will likely be a very long time until the shares reach new highs.
• The stock is a sell for short and medium term investors.

Overview:

Disney (DIS) has for a long time been a favorite stock that avid fans hold through thick and thin and plan to pass onto the next generation. It's a "forever" stock. See my previous Disney article :

Since that comment, CEO Iger has significantly streamlined the company via layoffs and cost cuts, fought off private equity board challenges, delayed stepping down until 2026, finally stemmed the losses in streaming, captured the Hulu shares it didn't control, and reduced presence in India. All good, but also already reflected in the recent share price run to $120. Succession plans, however, remain murky....

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