Disney: Changes Signal Sharper Focus On Profitability, Upgrade To Buy


  • Returning CEO Bob Iger announced a cost reduction program and an organizational restructure that has the potential to deliver a much sharper focus on DTC profitability.
  • The obsession with growing streaming subscriber numbers at almost any cost is over.
  • The Parks, Experiences and Products segment continues to perform strongly.
  • Investors should be prepared for a major restructure and impairment charge in the months ahead.
  • With signs that DIS will have a much greater focus on profitability going forward, I upgrade to a Buy rating.
Mickey"s On Top

cjmacer/iStock Editorial via Getty Images


The Walt Disney Company (NYSE:DIS) reported 1Q23 results on 08 February 2023. Back in November 2022, the market reacted positively to news that Bob Iger would return for another stint in the CEO seat; whether the bounce in the share

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This writing is for informational purposes only. All opinions expressed herein are not investment recommendations, and are not meant to be relied upon in investment decisions. The author is not acting in an investment advisor capacity and is not a registered investment advisor. The author recommends investors consult a qualified investment advisor before making any trade. This article is not an investment research report, but an opinion written at a point in time. The author’s opinions expressed herein address only a small cross-section of data related to an investment in securities mentioned. Any analysis presented is based on incomplete information, and is limited in scope and accuracy. The information and data in this article are obtained from sources believed to be reliable, but their accuracy and completeness are not guaranteed. Any and all opinions, estimates, and conclusions are based on the author’s best judgment at the time of publication, and are subject to change without notice. Past performance is no guarantee of future returns.

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