Where Will Disney Stock Be in 1 Year?
Disney's (NYSE: DIS) earnings reports are sometimes more dramatic than its blockbuster films, and the fiscal second-quarter (ended March 30) results, reported last week, were another mixed bag. That heightens the dilemma: buy, sell, or hold Disney stock? As always when considering the big question, it's most important to focus on the long-term story and skip the short-term antics. Let's see where Disney could be in a year from now and how that should influence investors.
The big win for Disney in the second-quarter report was the dramatic improvement in streaming losses. The big shakeup that left former CEO Bob Chapek out and brought back Bob Iger was heavily influenced by high streaming losses, and part of the company's new strategy is a stronger focus on generating profits from Disney+ and Disney's other streaming networks.
Without the unprofitable ESPN+ service, streaming produced $47 million in operating income, reaching the goal of profitability. Total streaming loss was $18 million, and Iger reiterated that combined streaming would be profitable in the fiscal fourth quarter. Disney+ added 6 million subscribers in the quarter, although Disney+Hotstar subscribers decreased 6%.
Source Fool.com
