Lorne Steinberg Walt Disney Co. DIS-N TOP PICK Jun 27, 2024

Happy with results this morning. Increased profitability from streaming. Struggling lower- and mid-income consumer impacting park revenues; probably a short-term concern. Phenomenal content library.

Streamers, including DIS, will work in 2025, unlike in previous years.

It reports Wednesday. Hurricanes impacted last quarter and the LA wildfires could impact the forecast in this quarter. But all else is hitting on all cyclinders incuding linear TV. Could be putting recent weakness behind them, and shares are historically cheap.

They reported a terrific quarter: theme parks much better than expected, movies fantastic, TV and sports positive. But there was one line in the report that said that when they raised prices they lost 1% of subscribers in Q4. So, shares fell 2.44% today. He expects people will forget why they sold Disney and its shares will be higher.

Profits not appearing from streaming. Sold stock 4 years ago. Management issues and problems with business have not been good. Will take time to see if business can turn around. 

The price hikes must stop at the theme parks and focus on getting more people into them. It's good to hold now, because of the valuation and streaming is more profitable than it was projected a year ago.

Lumpy road to recovery, but Iger's making progress. Streaming is becoming profitable. Content offerings are turning around, with a huge library. Parks have slowed, investment has increased; yet still a destination vacation for many across the world. Good growth in cruise ships. Undemanding multiple under 20x PE. She's being patient; upside from here.

It has been tough to own. She doesn't see a catalyst near term, but they are getting their streaming business in line and will survive streaming, as they invest in their theme parks. 1.3 million Canadian visited Orlando in 2023, so will they come back?

Theme parks are hanging in despite a tough consumer and DIS doesn't expect weakness in consumers. Streaming is replacing cable. Likes the Abu Dhabi news.

Most important is that market sentiment has been depressed for so long, so this report changes that sentiment. Subs on streaming were strong. He likes this report.