Disney Stock: Is It Ready to Sink or Swim?
Millions of people visit a Walt Disney (NYSE: DIS) theme park every year, and its movie studio business is one of the most profitable in Hollywood. But across all its business segments, the House of Mouse hasn't posted the financial results investors are looking for, which has sent the stock down almost 60% off its previous highs.
The stock is either the buying opportunity of a lifetime or a value trap. At first glance, some investors may intuitively sense a buying opportunity. After all, we're talking about a company that has been entertaining families for nearly a century. But let's find out exactly what is driving the stock down, and what Disney is doing about it, before rushing to buy Disney shares.
Overall, Disney appears to be doing fine from a revenue standpoint. The top line increased by 8% year over year through the first nine months of the fiscal year (ended July 1). But weak performance on the bottom line has been a red flag. In the first three quarters of fiscal 2023, Disney's adjusted diluted earnings per share fell 9% year over year to $2.94.
Source Fool.com
