Risk Taking Has Been a Winning Move for Disney. Will Its Latest Gamble Pay Off?
Walt Disney (NYSE: DIS) is arguably the most influential, vertically integrated media company in the world. And like most success stories, its history is riddled with risks, gambles, dreams, failures, and perseverance.
The company's latest risk is its streaming service, Disney+. Launched in November 2019, Disney+ is costing the company a fortune. In fact, Disney's direct-to-consumer segment lost $887 million in its most recently reported quarter, largely due to content and advertising spending.
Due to its size and influence, Disney has long been seen as a safe stock. However, since management stopped paying its dividend in 2020 as the pandemic accelerated, the stock has lost some of its blue-chip luster. Now, management needs to prove it can properly allocate capital to justify not paying a dividend.
Source Fool.com
