Tag: Netflix

Our takeaways for Disney Stock Analysis 2022, begin with the pros:

1. Sticky customer, kids watch Disney again and again. Come to its park every holiday.
2. Theme Park shows significant improvement. We believe this year it will achieve its pre-COVID performance. Another good news is Disney keeps enhancing its places. Elaborate later.
3. Though till now Disney+ still burning cash to run its business, the ad-supported content will be the game changer (unlike Netflix). Disney’s content is specific, family-friendly, and targeted. It is good for a third party to access Disney viewers. We will elaborate on this later.
4. Disney stock price is at COVID level (July 2022)

Cons:

1. Disney runs an expensive business that needs a high amount of capital. Theme Park requires massive investment, even their digital content needs regular reinforcement like the Fox acquisition in 2017. Unfortunately, Disney’s balance sheet isn’t as spectacular as its magical story to handle all of that needs easily.
2. Management fails our expectations. Under though situation – the COVID – they prioritize themselves and leave shareholders.
3. Lack of tailwind. The key driver for growth is increasing Disneyland ticket or subscriber fees. Reaching more people is more difficult. Disney is simply not a fast grower company.

Ok, now going to the elaboration section. You can skip this post if you don’t want to go into further detail.

Oh, don’t worry – we keep this post updated regularly.