3 Reasons Why Disney's Stock Is a Buy and Hold

The introduction of its streaming service is a game-changer for Disney (NYSE: DIS). Early reports say Disney+ had 10 million signups on the first day, though this includes the seven-day free trial, so it's not a measure of how many people are paying customers. The cash flow from that amount of subscriptions could reach $700 million annually. The intense demand right out the gate highlights the enthusiasm for a direct-to-consumer offering from Disney.

Disney stock is up 32.76% for the year compared with the S&P 500, which is up 24.32%. The market is giving credit to its ability to adapt to changes in consumer tastes. Here are the three reasons why Disney is a long-term buy and hold.

Disney has a treasure trove of assets in its vault. It has been producing high-quality content for nearly a century. No other studio has the kind of success Disney has in theatrical releases. Disney has a streak of eight straight years of the top-selling movie at the box office, the highest gross sales for the period from 1995 to 2019, and the highest average gross sales per film.

Source Fool.com