Disney: I Saw A Different Opportunity Despite Mounting Pessimism From Mr. Market

Summary:

  • Disney stock price has fallen 20% this year, underperforming the market significantly compared to the S&P 500.
  • I see the company’s plans to implement cost-cutting measures and its strategy to monetize its streaming platforms as a great sign to improve its future profitability.
  • DIS’s strong intellectual properties and global reputation differentiate it from competitors, making it a company with a strong moat.
  • At its current price level, I see an upside potential of 20-30% based on my DCF estimation.

A Walt Disney World entrance arch gate in Orlando, Florida, USA.

JHVEPhoto

Investment Thesis

The share price of Disney (NYSE:DIS) has significantly underperformed the overall market. While the S&P500 returned investors an average of 20% YTD, the share price of Disney has fallen by an eye-watering 20%, from its peak in 2023. Despite the fact


Analyst’s Disclosure: I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. 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.

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