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Disney's stock has gone nowhere since 2015 even as the business grew substantially. Revenue doubled, its cruise fleet doubled from four to eight ships, Disney+ and Hulu became a streaming powerhouse, parks hit record revenue and attendance, and it broke the record for highest-grossing animated film three times. x.comÂ
Disney's improved fundamentals against a compressed P/E make the shares a coiled spring. Revenue is climbing 5-10% yearly, net income rose from $2 billion to $12 billion, and margins expanded while the stock has not reached a new all-time high in six years. That is a six-year discount with sixfold better fundamentals. x.comÂ
Fending off Apple, Disney, Amazon and others will prevent Netflix from ever returning capital to shareholders. The obsession with its stock is hard to understand. x.comÂ
Disney looks like a dead stock walking as it raises streaming prices again on a service with little to no new content and many more commercials. Subscribers seem unlikely to keep paying, which is probably why management stopped reporting subscriber numbers. x.comÂ
Disney's value rests far more on theme parks, resorts and cruise lines than on films: those businesses grossed over $36.2B last year alone, versus $31B lifetime across all 31 Marvel movies. Strong box office helps, and the stock could head toward about $125. x.comÂ
Disney is a buy now that Bob Iger, its biggest liability because he would not let go, has stepped aside. Its parks drew about 145 million visitors last year, more than any country, including France at about 100 million. x.comÂ
Disney is very likely to break below its 200-period moving average, opening a path to $40, with the fourth quarter of 2021 marking the peak. Streaming cancellations are skyrocketing, and people who can't afford groceries won't go to Disney parks either. x.comÂ
Netflix's competition and valuation leave its risk/reward well behind other opportunities. It competes with Amazon, Disney, Apple and YouTube, while trading at about 20x next-twelve-month earnings for roughly 14% annual EPS growth over the next few years. It is mostly a great company, but these numbers do not make it a multibagger. x.com x.com x.com x.comÂ
Disney is cheap against its earnings. At $110.61 it trades at 23x earnings and 15x next year's, while entertainment companies usually get 28x. Fair value runs $183.42 to $233.44, about 28x next year's $7.44 EPS, putting the price 40% below the low end, though that leans on a forecast 53% above trailing earnings. This is a valuation read only, off reported earnings and revenue estimates, with no fundamental work. x.comÂ
Disney is a dog with fleas. Absurdly high theme-park prices face demand elasticity as a weakening consumer in a K-shaped economy pulls back. Its movie lineup is dated, with live-action Moana joining Snow White as box-office bombs; its balance sheet carries heavy debt from poorly conceived acquisitions that could curb park spending; and AI threatens several businesses. There is a price for everything: below $90, reward versus risk turns favorable. x.com x.comÂ
Fubo's subscriber engine and ad business are turning, but the top line still isn't growing. Subscribers grew 2%, the first growth since the Disney deal, a 275,000 World Cup swing from last year's June-quarter loss. June was the best ad month in years, before Disney's ad server shows up, and cash exceeds the 2029 converts. But pro forma revenue slipped 0.1%, a new S-8 adds about a quarter of the float, and breakeven Q4 guidance is a choice. Everything hangs on CEO Alisa Bowen's November update. … Show more
