Will Disney Dominate the Media Space? 1 Analyst Thinks So

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

Investors are not happy with Walt Disney (NYSE: DIS) stock.

Over the past year, Disney shares have gained only 8% versus an overall gain of 13% on the S&P 500. Nearly all of that underperformance can be tracked back to just one event -- Disney's announcement on Aug. 8 that it will more than double its initial $1 billion stake in video streaming company BAMTech by investing a further $1.6 billion to take a controlling 75% interest in the company. When Disney made that announcement, the stock quickly fell 4%, or nearly the entire amount by which it has underperformed the S&P 500 over the past year.

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Source: Fool.com