Disney $179.09

Gain to date: 4.2%

Original entry point: Buy at $171.82, 21 January 2021

Our positive call on Disney may only have been rewarded with modest gains so far but our faith in the long-term investment case has been further bolstered by the company’s latest quarterly release (12 August).

The company reported better than expected earnings for its third quarter as all of its business units turned profitable. Disney also posted revenue of $17.02 billion for the three months ended on 3 July, up 45% year over year.

The company’s main streaming service Disney+ unveiled 116 million paid subscribers compared with the 114.5 million expected by analysts.

There’s plenty of content to drive subscriber growth further as the company’s investment in new programming across its Marvel, Star Wars, Pixar and Disney franchises bears fruit.

At the same time the gradual removal of Covid restrictions is enabling the reopening of its theme parks and resorts.

This has a dual benefit. These are very profitable operations in their own right but also help forge a stronger connection between consumers and its creations, helping to solidify its position as the world’s leading entertainment company.

SHARES SAYS: Disney is a stock to buy and hold for the long run. 

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