Hey, what's up everyone? Welcome back to my world of stocks. So, I've actually been getting a lot of comments asking me about Disney stock lately for two reasons really. Number one is that I don't think we've talked about them since last year. So, it's definitely been pretty big while here since I've given you an update on the company. And number two is that the stock has been falling by quite a lot. In fact, it's actually negative over the past decade, too, which is pretty crazy for a world leader in entertainment like this. So, as a shareholder myself, I'm going to explain to you why the stock has been falling more recently, and I'm also going to give you my three main reasons why I still feel that the stock is a buy on this dip for the long term, and especially if the price falls even lower than where it's at already. But I hope you enjoy this update. Let's go ahead and jump straight into it. Now, why has the stock been crashing? Well, let's pull up the stock chart and take a look at what's going on here. Now, as you can see, not only has the House of Mouse lost nearly a fifth of its entire value in just the past 3 months alone, but it's also down over half of its value from the top and is literally trading at one of the absolute lowest prices of the past decade, where it's even negative by close to 20%. Again, that's kind of mind-blowing for such a giant media behemoth like this to be crashing so hard. And when looking at why that's been happening, well, I'll keep it short for you, but here's just five really quick reasons for why I believe uh what I believe has caused the stock to crater. Now, number one is that their legacy cable TV businesses like ESPN, ABC, and so on have really struggled in the face of cord cutting and streaming apps like Netflix. Number two was the pandemic where people around the world were prohibited from going to see Disney movies at the theater or visiting their gigantic theme parks and resorts, which even when they did open back up, it was still at limited capacity for a couple years. Now, despite that, the stock actually soared at one point, largely thanks to the launch of their new streaming services like Disney Plus that sent a bunch of hype pouring back into the stock. However, that led to reason number three, which is that the stock eventually returned to its crashing ways coming off of the pandemic, where not only was the company dealing with crippling inflation and high interest rates, but at the same time, Disney streaming services were bleeding money on the bottom line, reaching a high of $ 1.5 billion in operating losses during the fourth quarter of fiscal 2022. Now, reason number four, as if things weren't bad enough already, Disney's more kind of right-leaning audiences took issue with how quote unquote the company had become woke, uh, which was reflected in the poor performance of several new shows and movies, like The Marvels, for example, which was actually the worst performing movie in Marvel franchise history. And by the way, that goes both ways. I mean, we're literally seeing the same thing happen with Tesla right now, who's alienated kind of the left-leaning part of their fan base. And that's why I always tell you guys, it doesn't really matter what your politics are. Anytime a company gets political in any kind of way or or dives into these social topics that are so controversial out there, um it's usually going to have a negative impact on your business because you're just kind of limiting your target audience. And at the end of the day, that's just not going to be a good thing. That's why we've seen uh stocks like Disney and also stocks like Tesla both get hammered um because of it. Now, I will say though with Disney, it's not just that uh some some of the audience found issue with with some of that content being controversial to them. But it's also, in my opinion, I feel like they've just had some stagnation, some real lack of creativity in some of the content that they've been putting out. And I feel that they're not really putting out what the audience wants. Case in point, I think almost the entire Disney fan base can probably agree that the new trilogy of Star Wars movies was pretty horrible. And one of the big reasons why is because at the end of it, rather than Disney thinking up of some cool new villain to introduce to the franchise, they just brought back Palpatine for the millionth time and kind of undid the whole sacrifice that Anakin made in the story line. And I'm sorry for getting a little nerdy on you guys there, but just the point being that pretty much the entire Disney fan base um did not like that. So that's just another example there of Disney just not really giving their audience what they really want and that can lead to some poor performance. Now reason number five, the newest issue of the bunch has also been tariffs because as if all of that stuff wasn't bad enough, well uh you know now the economy or economists and analysts are worried about what kind of impact tariffs will have. Now, I will say Disney is probably more better insulated from tariffs than most other companies out there because of their localized theme parks and movie screens around the world that don't really have anything to do with tariffs or their streaming services that are also going to be much harder to tax than, you know, physical goods moving through borders. But it is still something that Disney will ultimately have to contend with if broad tariffs cause inflation or an economic downturn like a recession at which point, you know, we could see much less people willing to pay, you know, thousands of dollars at times to travel and visit their various theme parks and resorts and cruises and so on. Okay? And yet, despite all of that, here's three main reasons why I still think that the stock is a buy on this dip for the long term, regardless of any of these issues that I actually feel are much more short-term than anything else. Now, reason number one, probably the most obvious, is that the stock is dirt cheap now with one of the best entry points that we may ever get for such a dominant world leader like this. In fact, get this guys, you know how the stock is actually negative over the past 10 years? Well, sales have actually grown much higher since then. and are expected to cross the $100 billion mark by next year. But even just this year, revenues are still close to double what they were 10 years ago. So, how does it make any sense for the stock to actually be much lower today? Well, bears would argue that it's because of all of the profitability hits that they've been taking. But while I do agree that that's been a concern, Disney is on much better footing today than they were back then. And they're also back to significant growth on the bottom line, too. In fact, earnings per share will will actually be higher this year than they were back then. And analysts project them to continue growing much higher in future years, too. Now, why is that? Well, that leads me to reason number two, and that's that Disney's streaming segment has actually reached profitability now. So, that's no longer a concern. They're posting positive they posted positive uh operating income in each of the past three quarters in a row with management also expecting this year to cross the $1 billion mark 2. So not only is that a gigantic improvement from the heavy losses they were taking just a short while ago, but it's likely to continue getting bigger over time, too. And yet streaming is is um you know even though it it's probably the the part of Disney's business that gets the most attention these days, it's arguably not their most important segment as they bring in much more revenue from experiences, which is also by far their biggest profit driver from things like theme parks, cruises, big movie releases, merchandising, licensing, and more. Well, to capitalize on those higher margin businesses, Disney is actually doubling their investments on that segment through the next decade, up to $60 billion, which includes doubling also their new cruise ships order from 4 to 8, bringing the total uh it'll be up to 13 different cruise ships by 2031. At the same time, they're also making huge expansions to their theme parks that will help attract more customers, too, even if they raise ticket prices. Which is reason number three. The fact that you can still get all of this at such a low price tag for what is still one of the strongest brands in entertainment in the entire world that is able to command those premium prices. In fact, even with all the controversies last year, Disney still put out the three top grossing movies of the year with Inside Out 2, Deadpool and Wolverine and Moana 2. They're also bringing back a bunch of fan favorite characters in Marvel, like they did with Deadpool and Wolverine, but also the return of Daredevil, which had the biggest premiere on Disney Plus. They're bringing back Robert Downey Jr. as Dr. Doom alongside tons of other awesome characters like Magneto, Professor X, Gambit, Cyclops, Nightcrawler, and more for the Doomsday Saga. All of which, by the way, is going to help fuel their streaming business over time, too. So, there's a lot of synergies going on as well. And speaking of the streaming business, well, this might surprise you, but they actually just again despite all the controversies, it still holds even more market share in America when you combine Disney Plus and Hulu than the big giant behemoths like Amazon and Netflix. And that's pretty crazy. I think it surprised a lot of people. And on top of this, Disney theme parks continue to be the most popular in the entire world. In fact, Disney owns almost every one of the top 12. And that's of the entire world. I mean, that's you talk about brand strength. I mean, there you have it there. People are still wanting to go and see Disney brands and products. There's still a lot of strength in Disney's brands. And because of that, I just feel being able to to scoop up the stock at this low of a price tag for the long term, it just seems worth the risk to me. And by the way, I'm not the only one that believes this. If you look through analyst coverage, you'll see that almost every single analyst gives Disney a buy or a strong buy rating with price targets for just the next 12 months alone being much higher than where it sits today. Even the lowest, most bearish analyst uh still thinks that the stock will climb by 5%. While the average gives it 37% gains and again that's just over the next 12 months. I'm looking out much further than that over the long term. Again though, all of this is just my own ignorant opinion. So, make sure that you do your own research and make your own decisions. Don't ever just copy what I'm doing myself. You always got to make your own decisions out there. But, let me know what you think about all of this down below. Everything I said, I'd love to hear your thoughts. We can have a conversation. Keep it friendly. But yeah, I hope you enjoyed this update on Disney stock. And I hope you're all doing well out there. And I will catch you in the next one. All right. Take care, my friends. Bye-bye.