Joshua Lutkemuller, CFA of Strongside Asset Management, see’s Disney as a strong summer investment. Losing almost 30% of its market cap in 2022, Joshua views this as the perfect time to invest in the entertainment juggernaut.
“The second-quarter earnings had some ups and downs, missing on revenue figures ($19.25B vs. $20B est.) and earnings figures (EPS of $1.08 vs. $1.19 est.). However, I expect momentum to persist in the second half of the year as parks are gaining momentum going into the summer. Disney parks brought in $6.7B of revenue, nearly double that of the park’s revenue from last year.”
Not only is Disney looking at their parks as an uptick in stock price, but their streaming service is pulling in substantial numbers as well. “In Q2, Disney+ added nearly 8 million subscribers, crushing analyst estimates of 2.7 million. This brings Disney+’s subscriber base to 137.7M, which has eclipsed Netflix’s subscriber growth rate. So it is hard to argue that Disney doesn’t have a promising future, and at this price, it is worth looking at.”