John Zechner Walt Disney Co. DIS-N SELL Jul 24, 2025

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.

A lot going on here in recent years, but just a few years ago, the stock was nearly doubled, based on hopes for Disney+. That said, they will be a long-term winner in streaming; their content is strong around the world. Also, their theme parks keep selling, and are expanding internationally. Probably we've seen peak Marvel, but Disney holds a deep catalogue of content, including Star Wars. If they can sort out management and make streaming profitable, they should return to 20% margins.

After some management turnover, it's finally getting its feet right. He likes a lot of what the current CEO is doing.

Spike in stock is due to fears of an economic slowdown being put at bay. Theme parks are expanding, but will depend on macro environment. ESPN is more challenged. Disney+ is challenged because NFLX is beating everybody. Paying 20x PE for 12-13% growth. Doesn't dislike the name, but some segments are having a tough go.

Is up 7% YTD and 20% the past year. The stock is breaking out. It set a 52-week high last week.

Though a streamer like NFLX, they are in very different businesses. The opportunity in DIS is their succession plan which should be a positive catalyst. 

Is up 19% in the last 3 months. Trades at 19x PE, a decent discount to the market, 13-16% earnings growth, movies have rebounded and theme parks are doing well. A great company. 

You can't compare this to Netflix, because they have different drivers. Their movies and theme parks (up 9% this year) are doing well.