Analyst: Investors Underestimating Disney
It’s been a bit of a roller coaster. However, and admittedly, that metaphoric attraction would be situated on top of a skyscraper.
But during a week where Walt Disney stock hit an all-time high of $203.02, The Mouse has dipped below the Mendoza line.
However, among the amazing things announced during its recent investor call, the presumed deal to broadcast the NHL, and the upcoming opening of Disneyland, many feel as if Disney’s best days are yet ahead.
Only Fool’s Are Underestimating Disney
And, according to John Ballard of The Motley Fool, even though the stock has doubled in value since March 2020, “investors shouldn’t feel like they have missed the boat.”
As Disney CEO Bob Chapek recently stated at the Morgan Stanley technology, media, and telecom conference, the company hasn’t yet had the benefit of seeing both its streaming and parks businesses operating at full throttle at the same time.
“Well, that moment is about to come,” Chapek said. Once the theme parks fully recover, the operational improvements Disney has made during the downtime could make the parks more profitable, which could fuel the stock to new highs.
Ballard pointed to several factors that could be important to The Walt Disney Company’s burgeoning Renaissance:
- Immersive experience via new technology
- More personalized, seamless interaction
- Overall greater efficiency in the parks
100,000,000 Subs Can’t Be Wrong
(AP Photo/Richard Drew, File)
And, of course, 100 million subs for Disney+
“The enormous success of Disney+ —which has now surpassed 100 million subscribers—has inspired us to be even more ambitious, and to significantly increase our investment in the development of high-quality content,” Mr. Chapek said in a statement earlier this week. “In fact, we set a target of 100+ new titles per year, and this includes Disney Animation, Disney Live Action, Marvel, Star Wars, and National Geographic. Our direct-to-consumer business is the Company’s top priority, and our robust pipeline of content will continue to fuel its growth.”
Photo: Matt Stroshane
So, the sky’s the limit, and count Fool.com’s Ballard among those who feel like those skies are green.
Check out the full Fool.com article. And, of course, keep watching the ticker.
