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Disney still a great long-term investment despite film delays
Loss to date: -0.4%
Original entry point: Buy at $171.82, 21 January 2021
A disappointing swoon in entertainment giant Disney’s share price in recent months has wiped out our gains with the latest catalyst the delayed release of major titles slated for 2022.
While the company has found the going a little tougher of late we remain big fans of its earnings potential and see nothing to detract from the long-term investment case.
The latest installment in the Indiana Jones series has been pushed back by a year to summer 2023 while several films from the MCU or Marvel Cinematic Universe are also being pushed back with other untitled projects for 2023 being shelved.
This reflects production issues and also the interconnected nature of the MCU with the release of the latest entries to the pantheon meticulously planned to make narrative sense.
The news follows on from a muted update in September when the company said growth in paid subscribers for its Disney+ streaming service would moderate to low single-digit millions in its fourth quarter and signaled dividends and buybacks remained off the table due to cash flow and debt constraints.
SHARES SAYS: Investors should look past the current issues and focus on Disney’s advantages including its huge resonance with consumers.