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magazineDisney still a great long-term investment despite film delays
Disney $171.14
Loss to date: -0.4%
Original entry point: Buy at $171.82, 21 January 2021
A disappointing swoon in entertainment giant Disney’s share price in recent months has wiped out our gains with the latest catalyst the delayed release of major titles slated for 2022.
While the company has found the going a little tougher of late we remain big fans of its earnings potential and see nothing to detract from the long-term investment case.
The latest installment in the Indiana Jones series has been pushed back by a year to summer 2023 while several films from the MCU or Marvel Cinematic Universe are also being pushed back with other untitled projects for 2023 being shelved.
This reflects production issues and also the interconnected nature of the MCU with the release of the latest entries to the pantheon meticulously planned to make narrative sense.
The news follows on from a muted update in September when the company said growth in paid subscribers for its Disney+ streaming service would moderate to low single-digit millions in its fourth quarter and signaled dividends and buybacks remained off the table due to cash flow and debt constraints.
SHARES SAYS: Investors should look past the current issues and focus on Disney’s advantages including its huge resonance with consumers.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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