Is Disney Cheap or Just a Piece of Crap

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Lately it seems as if Disney stock has decided to go on a ride of its own, hopping on a sled and flying downhill hoping for a savior to pick them up from a certain demise at the bottom. But is that in the near future or are they still on that greased up sled sliding down that snowy hill? As of now the price has been hovering around $88 a share, which is a far cry from their highs back in 2021 of over $200 a share. And last week’s so-so earnings are not helping to demonstrate that things are getting better, and they will turn this abysmal state around.

In last Wednesday’s EPS report, they slightly beat earnings with $1.03 vs the estimates of $0.99. The problem that lies within this small win in earnings is that they are barely getting by when they have massive looming problems. Right now, there is the current state of the strike, which, at present, is indirectly saving them money. Tere is also the fact that they are making less interesting content, and finally they have decided to follow in Netflix’s footsteps of password crackdowns, which is scaring users away.

Disney overall has not made a new and interesting movie in some time. To me that is saying that Bob Iger’s return hasn’t been so great for Disney. With a PE ratio hovering around 40 right now, it still seems like they can continue to fall after already falling significantly since 2021. So – in spite of all of the things you might already know, is Disney a Buy or should you run away like Simba in the beginning of the Lion King? The answer is actually more complex than you think if you try to look at all of the facets in this diamond. This is because Disney, even with its recent unwatchable movies, is still a massive company that has massive movie franchises that can prop the company up on content no one cares about. Even with the strikes, the password crackdowns, and Disney+ subscriber troubles they still have a significant amount of income streams to make an effective turnaround.

Last Quarter they reported a loss in Media and Entertainment Distribution, down slightly from last year’s numbers. However they were able to make up for it in Parks, Experiences, and Products. It feels like Disney is stuck in an extended scene that just won’t end. Because even though they are down currently and in the short term, the stock value can still go down more. Now, that being said, in the longer term they have an upside, especially with their diversification within their industry. This is a company that was able to make a movie decades ago and continues to profit on it from a series of income streams. So overall I think that Disney does have upside as a company but will take time to organically change. They have to make films that don’t make people vomit when they see them. Overall, this isn’t financial advice, but long term I personally find Disney an enticing buy, and worth more even though you would rather poke your eyes out with a hot poker than watch another terrible remake.