Where Will Disney Stock Be in 5 Years?
Shares of Disney (NYSE: DIS) have declined 39.5% over the past year as investors have lost faith that the company will ever turn a significant profit in the streaming business. But that may be a short-sighted way to look at Disney's performance in 2022.
Investors who have a long-term time horizon can look past a quarter or year of losses to the opportunity Disney is trying to unlock in streaming. Here's a look at where the company will likely be in five years and why I think the market underestimates its potential.
Disney's linear-network revenue, which includes its traditional television networks such as ABC and ESPN, saw a 5% decrease in the year ending at $6.34 billion. However, the company's operating income increased by 6% to reach $1.74 billion. This indicates that while the linear-network business may be experiencing a slow decline, Disney has been able to maintain a strong profitability in the segment.
Source Fool.com
