Despite Losses Disney Stock Still Desirable
Disney Stock Trended Upward This Week
I really didn’t know what to expect.
When The Walt Disney Company earnings call ended last week, I was worried about how my 11 shares would fare.
I mean, the headlines were not good:
Thankfully, I did not have to be concerned.
Bolstered by the success of the Disney+ streaming service, the stock bounced from 117.29 to a high over 131 and ended the week at 129.93.
The Motley Fool’s Adam Levine-Weinberg posted:
Disney’s Streaming Strategy Is Paying Huge Dividends
Disney’s direct-to-consumer efforts reached a major milestone last quarter. The company surpassed 100 million subscribers across all of its streaming services, ending the period with 101.5 million subscribers across its Disney+, Hulu, and ESPN+ services.
Disney+ now represents an outright majority of that total, with 57.5 million subscribers as of June 27. That came up a little short of the average analyst estimate of 59.4 million. However, it’s an amazing achievement nonetheless. A quarter earlier, Disney+ had 33.5 million subscribers. A year ago, it didn’t even exist. And while growth is moderating, the service still has plenty of momentum.
Levine-Weinberg added, “As of Aug. 3, Disney+ had 60.5 million paid subscribers. For reference, Disney’s initial goal for Disney+ was to grow the subscriber base to between 60 million and 90 million by 2024. Clearly, it’s way ahead of schedule.”
Is Disney Stock A Buy?
With that in mind, confidence remains high in this investor. And Motley Fool explained that makes sense, too.
Finally, Levine-Weinberg posted:
The faster-than-expected growth of Disney’s direct-to-consumer business should give investors comfort that the company will be able to navigate the transition to a new streaming-first business model with ease. Based on Disney’s quarter-end streaming subscriber total and average monthly revenue per subscriber, the company’s streaming business has already reached an $8 billion annual revenue run rate. Netflix didn’t reach $8 billion in annual revenue until 2016.