Disney: Still Missing The Magic

Summary:

  • Disney’s shift towards a direct-to-consumer model is risky during an economic downturn, with revenue growth lagging behind competitors like Netflix.
  • Concerns over Disney’s overvalued share price, plateauing business growth, and reliance on cost-cutting measures indicate a potential downward trend.
  • Despite new content releases and entertainment experiences, competition remains strong and economic conditions may impact Disney’s future success.

Disney Logo On Shop Window

RinoCdZ

Investment Thesis

In my last article on the house of mouse I rated Disney (NYSE:DIS) as a hold given what I believe to be as foundational issues with Disney+ streaming strategy. However their recent performance has led me to


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.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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