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DIS - Disney


Guest Schwab711

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  • 3 weeks later...
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Anyone thinks the  chart gap to $115 might close again.“? The stock basically jumped by $20 because of a great presentation. Profits for the next few years will be compressed and if the economy slows down theme parks will be hit.

 

My biggest worry is ESPN bleeding; it’s still a huge profit generator. I sold my DIS shares a while ago, because I felt the shares were overextended. I like the business, but paying up is not exactly in my nature ?

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The licensing rights are not all in the ownership of the company especially outside the US. The Investor Day presentation assumes a lot of those rights will be owned by the company at the launch of the streaming service. When the market starts to realize this, that might be a good entry point

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The streaming services will have a brutal few years before there is consolidation. Only after consolidation will there be serious profits I think.

 

And correct, Disney is years away from having the licenses to much of it's celebrated content.

 

Right now all of the value is flowing to the content companies.

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  • 2 weeks later...
Right now all of the value is flowing to the content companies.

 

Disagree. Value is flowing to content creators. Look at the bidding wars and fat deals for producers / writers / comedians.

 

Way more money between new and legacy companies than top creative talent available.

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  • 4 weeks later...

Pure anecdotal evidence but it sounds like Disney+ is crushing it. Colleagues and friends wouldn’t stop talking about it today. Many bought one-year subscriptions and seemed very pleased with the content.

 

I realize this isn’t rigorous fundamental analysis.. but the ubiquity and uniformity of positive sentiment was striking.

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Pure anecdotal evidence but it sounds like Disney+ is crushing it. Colleagues and friends wouldn’t stop talking about it today. Many bought one-year subscriptions and seemed very pleased with the content.

 

I realize this isn’t rigorous fundamental analysis.. but the ubiquity and uniformity of positive sentiment was striking.

 

They’re basically monetizing my nostalgia.

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Sentiment is definitely positive, but looking at the numbers, having a hard time seeing a reason not to sell the stock. At/above $140, there's an awful lot being priced in.

My thinking too. The streaming business will only turn profitable in a couple of years (2024?) and will cost a lot of money before that. I also don’t think Netflix will be easy to topple.

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10M subs already!

 

Yes - but how many subs after the free week is over and every-one has binged watched all of the StarWars/MCU movies.  ;)

 

wabuffo

 

Haha yea. Im not a TV guy at all, so I dont get it. But the news flow I find is somewhat predictable. Im lightening up into this...

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Families alone will be subscribers.. If you have kids you know what i mean. If you dont, kids marathon the million titles that disney has in their library. That is a lot of subscribers, domestic and international.  What is the expected subscribers number that is considered a success.? Have they put a number out yet?

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Families alone will be subscribers.. If you have kids you know what i mean. If you dont, kids marathon the million titles that disney has in their library. That is a lot of subscribers, domestic and international.  What is the expected subscribers number that is considered a success.? Have they put a number out yet?

 

I dont believe DIS has put anything out there. But for all the reasons you describe above, you know that its a near certainty that in the beginning, the numbers will be huge. So, if you front run that, and then just let the news flow and excitement work its way into the market, things typically skew your way. Or at least that's what Ive found is the easiest way to get 10% monthly returns out of mega cap stocks...let others focus on the granular bullshit. By the time they figure it out, the markets will already be re-priced and from there they can figure out if its worth hanging around for 7% annual appreciation.

 

Again, full disclosure, Ive cut about half my position into this rally, but wouldn't be shocked to see the 52 week tested again. This also gets quite interesting from a value perspective if you look at things through the lens of NFLX's valuation(assuming one thinks its valid, which I dont)...

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If anyone is considering D+, here's the presumed list of all movies: https://www.wildaboutmovies.com/features/disney-plus-complete-list-of-movies/

Not sure if it's 100% correct, but FYI.

 

Edit: So far I saw about 5 titles that I'd wanna watch and haven't seen before.

 

And this section: Disney Original Movies (Straight to TV or DVD) - I did not realize Disney made so much crap...  ::)

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Families alone will be subscribers.. If you have kids you know what i mean. If you dont, kids marathon the million titles that disney has in their library. That is a lot of subscribers, domestic and international.  What is the expected subscribers number that is considered a success.? Have they put a number out yet?

 

Management guided to between 60M and 90M subs by the end of fiscal 2024, with 1/3 US and 2/3 Intl. Impressive numbers out of the gate aren't that surprising, in part due to partnerships. Verizon customers with unlimited data plans get a 1-year subscription for free, for instance. Now that the bar has been set high by both the company and the market, they will need to get to the high end of expectations. And between now and 2024, they will give up 100% margin third party licensing revenue and start booking loss-making streaming revenue. Looks like a good candidate to trim into this strength and I will probably sell it all at 150.

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