photo of castle during daytime

We wrote in August about being bullish on Disney stock (NYSE:DIS). Last night, Disney announced their earnings and missed Wall Street forecasts. We are still bullish and think now is the best time to buy for a long term investment.

The miss was mainly due to slower pace in their streaming revenues. Disney’s total revenue in the quarter ending October 2 came in at $18.5B. That is up 26% compared with a year ago. Adjusted earnings were $0.37, $0.12 off expectations. Disney only saw 2.1 million new subscribers in the quarter, taking the total to 118.1 million. Direct-to-Consumer revenue increased 38% to $4.6B in the quarter, but and operating losses widened from $400M to $600M. The Parks, Experiences and Products division saw revenue nearly double compared with a year ago, to $5.45 billion. Disneyland only recently opened up and is the main driver behind this. Operating income totaled $640M, which narrowly missed Wall Street expectations. Disney blamed increased costs, noting that it had taken a $1 billion hit due to more extensive government regulations and Covid safety measures for employees as well as visitors.

Metaverse

Metaverse is a word I have been seeing frequently in recent weeks, especially since Facebook renamed to Meta. Firstly, what is it? The metaverse is a hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets. Metaverses, in some limited form, are already present on platforms like VRChat or video games like Second Life. It’s the type of thing you expect the future to be based around. But it’s not the future anymore, it’s present day. We can also add that it is linked to crypto and blockchain, providing a virtual reality for them to exist in. Always a good topic to connect to.

Disney will be joining the likes of Facebook and Microsoft in this new tech age. Referring to Disney’s history of innovation in storytelling, which includes Steamboat Willie, the first Mickey Mouse cartoon and one of the first to feature synchronised sound, Chapek said: “The Walt Disney Company has a long track record as an early adopter in the use of technology to enhance the entertainment experience.”

All though the Metaverse is a fairly new reality for tech (whilst ironically not being at all a reality), Disney is one of the few bug names to adopt this. I think the potential is huge for this line of technology and we only know the surface of its potential.

Invest in Disney stock

Disney is one of the largest companies in the world and built on solid foundations with a tremendous track record. They are open minded to expand ideas and have proven that again with the introduction to the Metaverse. For me, if there was a company to invest in now for generations to come, it is Disney. The earnings miss is a buying opportunity for you. The price hit a low of $158.33 but has risen to $163.27, seeing the largest volume this year and there is still a few hours left for the day.

4 thoughts on “This is the time to buy Disney stock and hold”
  1. […] For stocks, these names that look set to benefit: Meta (FB), Disney (DIS) and Microsoft (MSFT). All of them have a strong foundation already. Meta will focus heavily on their Metaverse, expanding the platform for the huge audience they already have. I think this may be one of the most popular virtual reality worlds. In the same way, Microsoft can build off what they have already and may see some near term growth as they look to implement features for Microsoft Teams next year. Disney is looking to create their own Metaverse built on the much loved brand they already have. You can read more on them in a recently published article here. […]

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