Investors Could Be Underestimating Disney's Biggest Growth Engine
When it comes to multimedia entertainment, no one can hold a candle to The Walt Disney Company (NYSE: DIS). Its reach is unparalleled, from feature films to television stations, theme parks, consumer products, sports, and cable -- the House of Mouse has it all.
Yet, it was the company's foray into streaming video that generated the greatest degree of investor excitement. At the height of the fervor, Disney shares climbed to a new all-time high, fueled by big subscriber gains and even bigger profit prognostications. More recently, however, enthusiasm has waned as mounting losses sent fair-weather investors to the sidelines, pushing Disney stock down 13% on the day following its most recent quarterly results.
You have to break a few eggs to make an omelet, as the saying goes, and investors appear to be ignoring an important lesson about the growth trajectory of streaming video services. As a result, they could be underestimating Disney's biggest growth engine and the equally big profits that could come as a result.
Source Fool.com
