Disney Stock: 3 Reasons to Buy the Dip

Shares of Walt Disney (NYSE: DIS) are trading down 8% over the last month, with most of the fall coming after the company's fiscal second-quarter earnings report on Wednesday. The House of Mouse reported a revenue increase of 13% year over year, with even stronger growth in profits.  

What seemed to send the stock price lower was lower subscriber additions to the Disney+ streaming service than expected. Overall, the direct-to-consumer segment posted a 12% increase in revenue for the quarter, driven by recent price increases in the domestic market. But forcing customers to pay up via price increases might have caused some pressure on subscriber growth.

Nonetheless, Disney is moving in the right direction financially, which was CEO Bob Iger's top priority on returning to Disney in November to replace Bob Chapek. Revenue and profits were up in the quarter, as management remains on schedule to bring costs down.

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Source Fool.com