Of all the large-cap blue stocks in the U.S., Walt Disney Co. (NYSE:DIS) has consistently been one of the most intriguing companies to follow throughout this pandemic, and prior to this pandemic, for that matter.
The company’s incredible portfolio of brands and extremely valuable intellectual property makes Disney stock one of the premier companies to own over the long-term with a durable competitive advantage (or moat) larger than most of the company’s peers.
The fact that Disney’s core businesses have been affected differently by this pandemic makes the analysis of Disney’s valuation very difficult. On the one hand, it is pretty clear that Disney’s theme parks, cruise business, and blockbuster movie slate will be impacted for a least a few quarters.
On the other hand, Disney+ and the company’s ESPN+ platforms are likely to see big increases in subscriber growth and revenue, particularly as sports get rolled out during the latter half of this year.
Complicating matters further, Disney’s shakeup of its management team in which CEO Bob Iger stepped down has not been a boon for the company’s stock. In hindsight, the time to sell Disney stock was when this announcement was made, however it appears some long-term investors are now building positions or adding to existing positions on this weakness.
For now, I’m going to be keeping Disney on my watch list and monitoring this stock for buying opportunities in the coming weeks.
Invest wisely, my friends.
