Looking At Disney Stock: Should I Buy?
In 2020, just owning Disney stock has been a roller coaster in and of itself.
Firstly, the day at the beginning of the pandemic where a low of $79 made sense, especially as Disney Parks around the world closed. However, the 52-week high-water-mark of $179 in and around Disney Investor Day 2020 defied some expectations.
So much so that CNBC’s Josh Brown recently pointed out that even with “half of the company” not operating, Disney was at near-record highs. Meanwhile, Sand Hill’s Brenda Vingiello added that Disney has done many smart things to grow Disney Plus.
Is Disney a Buy?
Hey, I am in it for the long haul. I am not selling my own 11.5 shares of DIS stock any time soon. However, I think about adding to my cache, so I sought what I consider a trusted source.
- Can Disney+ continue to drive DIS?
- What will it look like when the Parks open more fully?
- What am I not thinking about?
Content Is King
The Motley Fool’s Rick Munarriz posted and answered it all:
Disney+ will be just fine. It has proven that a single hit show […The Mandalorian] is enough when you have the deepest catalog bench in the business. Just imagine how things will play out as it scores more hits with the number of Marvel, Star Wars, and Pixar shows and films it expects to roll out exclusively on Disney+.
The real driver for Disney stock will be what happens with the rest of its business. Disney+ is riding the cord-cutting revolution, but its legacy media networks stand to lose in the migration process… Disney’s theme parks, resorts, and cruise lines will recover at the other end of the pandemic, but it won’t happen right away. Local leisure industries will be the first to bounce back, and Disney — more than any theme park operator — relies on international travel to attract its biggest spenders.
Disney isn’t going to double in the next nine months the way it has through the last nine months. However, you can’t bet against Disney’s chances to beat the market in the long run. It has an unmatched arsenal of intellectual property at its disposal, and content is king. Content is The Lion King, if you will.
Read Rick’s very comprehensive report and keep it here at MickeyBlog.com through all of the coming year’s Disney news.