Walt Disney (DIS:NYSE) $105.18

Loss to date: 38.7%

Original entry point: Buy at $171.82, 17 May 2022

It’s been a tough start to the year for Walt Disney (DIS:NYSE) but the company’s latest quarterly update (11 May) gave investors some cause for new hope.

The owner of the eponymous Disney franchise as well as Star Wars, Pixar and Marvel reported a better-than-expected 7.9 million sign-ups to its Disney+ platform. This compared with streaming rival Netflix which in April reported its first drop in subscriber numbers in a decade.

Granted the former is coming from a lower base, but it could suggest the depth, breadth and quality of Disney’s content is giving it an edge as households become more selective with their streaming subscriptions.

Less positive was the news that subscriber growth is expected to slow in the second half and Disney missed expectations for both revenue – $19.2 billion compared with the $20.03 billion forecast – and earnings per share – $1.08 compared with the $1.19 pencilled in.

Despite the recent fall in the share price, we still think Disney is a one-of-a-kind business and remains a stock to hold for the long term.

SHARES SAYS: Recent weakness represents a buying opportunity. 

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