Disney: Good Q4 Masks Aggressive Attack Needed On Debt, Business Model Issues

Summary:

  • The Walt Disney Company’s recent stock price increase is due to strong earnings, increased Disney+ subscriptions, and cost-saving targets.
  • However, the company still faces challenges with its debt, linear TV, and ESPN.
  • Selling off ESPN and ABC TV could raise funds to reduce debt and improve the company’s financial position.

Minnie and Mickey Mouse ride Disney Parks float

Bastiaan Slabbers

Premise: Let’s begin by agreeing that the recently nice run up of The Walt Disney Company (NYSE:DIS), ~$15 a share is understandable given the recent Q4 earnings release showing a hefty y/y earnings


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


The House Edge is widely recognized as the only marketplace service on the casino/gaming/online sports betting sectors, researched, written and available to SA readers by Howard Jay Klein, a 30 year c-suite veteran of the gaming industry. His inside out information and on the ground know how benefits from this unique perspective and his network of friends, former associates and colleagues in the industry contribute to a viewpoint has consistently produced superior returns. The House Edge consistently outperforms many standard analyst guidance with top returns.

According to TipRanks, Klein rates among the top 100 gaming analysts out of a global total of 10,000.

Leave a Reply

Your email address will not be published. Required fields are marked *