Disney Stock Analysis

Introduction

Recent interest in Disney stock due to:
- Lack of updates since last year
- Significant decline in stock value; negative over the past decade
As a shareholder, the speaker explains the stock's decline and reasons to buy on the dip

Decline in Legacy Cable TV
- Struggles of ESPN, ABC against cord-cutting and streaming services like Netflix
Impact of the Pandemic
- Restricted access to theaters, theme parks
- Limited capacity even after reopening
Post-Pandemic Financial Issues
- Inflation and high-interest rates
- Losses in streaming services, notably $1.5 billion in operating losses in Q4 2022
Political and Creative Challenges
- Right-leaning audience issues with perceived 'wokeness'
- Lack of creativity, failure to meet audience expectations (e.g. Star Wars trilogy)
Tariffs and Economic Concerns
- Potential impact of tariffs on economy
- Disney's relative insulation due to localized operations but still a concern

Valuation and Growth Prospects
- Stock is undervalued; sales have grown significantly
- Expected to cross $100 billion in sales by next year
- Earnings per share improving
Profitability in Streaming Segment
- Streaming services now profitable
- Positive operating income posted for three consecutive quarters
- Focus on high-margin businesses like theme parks, cruises, merchandising
- Planned $60 billion investment in these areas
Strong Brand and Market Position
- Dominant entertainment brand with pricing power
- Despite controversies, still leads in market share with Disney Plus and Hulu
- Theme parks remain globally popular; majority of top 12 parks are Disney-owned

Despite challenges, Disney's strong brand and market position present long-term investment potential
Importance of personal research and decision-making emphasized
Encourages engagement and friendly discussion