Why Concerns Over Disney's Streaming Growth Are Overblown

Walt Disney's (NYSE: DIS) stock price is down about 18% since November, when it reported that Disney+ added only 2.1 million subscribers in the September-ending quarter. That was below analysts' estimates, and the recent downturn across the broader market to start the year has only compounded the negative sentiment surrounding Disney. But concerns over Disney+'s subscriber growth should no longer matter.

It's all relative to value. At the current share price of around $140 at the time of writing, the Disney+ premium has vanished. The present stock price merely puts a fair value on Disney's media networks, theme parks, and consumer products. Investors who buy the stock today are basically getting Disney's future streaming growth for free. Here's why.

Image source: Walt Disney.

Continue reading

Source Fool.com