Market Musings


Disney Stock: Fair Price & UNRIVALED?

$dis stock disney stock May 13, 2022

Disney stock is down over 40% in the last year and investors are wondering if DIS has lost its magic. I think the recent decline in Disney stock is more a function of broader market turbulence (S&P 500 is down nearly 20%) than an erosion in Disney's key assets.

Disney still owns UNRIVALED theme parks (e.g. Disneyland), content (e.g. Avengers, Frozen), and channels for distribution (e.g. Disney+, ESPN, & ABC). 

The ultimate test if an asset is truly "UNRIVALED" is an ability to raise prices and that's exactly what they've historically done. What was once a $1 ticket for Disneyland in 1955, will now cost a family of 4 over $1,000! A taste of the magical kingdom has never been so expensive, and yet, 10 years from now, I'll bet the prices will be higher! LINK

Disney has also grown and adapted to the times. In November 2019, they launched Disney+, their Direct-to-Consumer streaming option. Since then Disney+ has grown to over 137...

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