Attractive Industry of Entertainment: Disney
Disney stocks are trading 50% off their peaks. The company has vastly diversified its portfolio with thematic entertainment parks, cinema and television studios, along with the streaming platform to allow (D2C) direct customer interaction. Disney owns a lot of successful brands like Mickey Mouse, Star Wars, Avengers, and many others.
The company is heavily investing in its streaming service Disney+ which is mostly posting losses now. Its operational margin is at -14%, while Netflix has a positive one at 15.5%. Direct content distribution via its own streaming platform without any third party is expected to bring it lots of money in the future. But for now, things are not going as expected with the situation not getting better.
Bob Iger, Disney’s newly returned CEO, has announced massive restructuring of company’s business. The company will be divided in seven departments, costs will be cut by $5.5 billion with staff cuts by 7,000 people (3% of the overall number of employees). Mr Iger was Disney’s CEO before 2020 and made several successful acquisitions including Pixar, Lucasfilm, and Marvel Entertainment.
Disney’s success story has lasted for quite a while and will hardly turn to a horror story in the foreseeable future, but this doesn’t meant that this is a reason for complacency. Disney stocks may continue to tumble towards their lows at $80, amid a general market correction. This would be quite an attractive level to add this stock to the investment portfolio.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.