WBD - Disney: The Magic Kingdom Has Finally Unlocked Its Shackles
2024-03-11 08:30:00 ET
Summary
- Walt Disney Company stock has outperformed the S&P 500 since my previous update, as the Magic Kingdom has rediscovered its winning touch.
- Disney's ability to rationalize costs and focus on achieving streaming profitability has boosted investor confidence.
- The recent joint venture with Fox and Warner in sports streaming showcases Disney's ability to unlock growth opportunities from its existing world-class assets.
- Disney's DTC transformation is tracking well, as it rationalizes content spending to improve profitability.
- I explain why the market hasn't been optimistic enough about Disney's ability to recover. DIS's FY26 earnings multiple remains valued at a relative discount to its long-term average.
Investors in the House of Mickey Mouse have done remarkably well, as The Walt Disney Company ( DIS ) stock has outperformed the S&P 500 ( SPX ) ( SPY ) since my last article in early December 2023. While I lowered my rating to a Hold/Neutral, I also highlighted that investors should capitalize on potential dips to add more exposure....
Disney: The Magic Kingdom Has Finally Unlocked Its Shackles