Summary
- Disney remains an Avoid, as risks from linear TV decline and movie franchise fatigue outweigh the upside from its Experiences segment.
- DIS’s $60 billion Experiences investment is largely priced in; future growth depends on revitalizing its movie pipeline to sustain park demand.
- Streaming will not fully offset the accelerating decline in linear TV profits, and transparency on subscriber metrics has decreased.
- Recent box office disappointments, notably Avatar 3, highlight the urgent need for new franchise successes to underpin long-term Experiences growth.
blanscape/iStock Editorial via Getty Images
It actually really hasn’t been that long since I last checked in on Disney (DIS) but I am returning to the subject as the company is in a fundamentally different place than it
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN 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.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Source: Disney: Parks Is The Company's Core Now, But The Core Of Parks Isn't Talked About At All – Read full article at Seeking Alpha