Disney: Set For More Upside In 2025

Summary:

• Disney achieved operating income profitability in streaming in the last quarter, marking a major inflection point in its direct-to-consumer business.
• I continue to rate Disney a strong buy due to its scalable streaming platform, improved operating income, increased capital returns and growing subscribers.
• Disney’s subscriber base grew to 56.0M in the U.S. and 66.7M internationally, driven by subscription price hikes. Disney also saw ARPU gains in both markets in Q4.
• Disney’s shares are attractively priced at a P/E ratio of 18.9X and present a favorable risk profile for long-term investors.

Disney’s (NYSE:DIS) shares have surged after the entertainment company reported better-than-expected results for its fourth fiscal quarter last month and finally achieved a major inflection point in its direct-to-consumer business: it achieved operating income

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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