Shares of Walt Disney (NYSE:DIS) have fallen 30% since the start of 2022. The entertainment company
has faced challenges since the start of the COVID-19 pandemic with limited travel hurting its theme park
revenue. But with the economy reopening, the business has started to see a rebound in that segment of
its operations.
For the three-month period ending April 2, revenue from parks, experiences, and products totaled $6.7
billion in revenue – more than double what that segment brought in during the prior-year quarter.
Overall revenue for the entire company for the second quarter was $19.2 billion, which was a 23% year-
over-year improvement.
Disney’s business has been showing promise of late but the stock has been struggling to gain
momentum nonetheless. It’s a question of which factor will prevail this year: will strong travel demand
lead to significant sales numbers for Disney’s theme parks, or will high inflation prove to be too
burdensome for people?
However, regardless of how it does this year, in the long run, those issues will subside and Disney should
thrive.
Its Disney+ streaming service is growing and now has 137.7 million subscribers, up from 103.6 million a
year ago. With continued growth in streaming plus its parks business still possessing more upside, there
could be better numbers in store for Disney down the road.
Some tough results have put the stock’s price-to-earnings multiple at 75, which is extremely high for
value investors. But on a forward basis, the earnings multiple falls to 27. The last time Disney’s stock
traded this low was April 2020 and now could be an opportune time for long-term investors to load up
on it.
