Disney: the parks carry it while streaming grows up
Parks and experiences earn most of the operating profit and grow every year. Streaming has turned profitable and is now the swing factor. The stock has gone nowhere for years because the two stories argue with each other; I think the argument is ending.
Sample research report used to test the layout. Delete before launch.
Thesis
For years the streaming losses hid the strength of the parks. Now streaming makes money, and the consolidated numbers finally show what the parks always were. The stock has not caught up.
Catalysts
- Streaming operating margin guidance.
- Cruise-ship capacity additions arriving over the next two years.
Risks
- A consumer slowdown hitting park attendance.
- Sports rights costs rising faster than the revenue they bring in.
What would prove me wrong
Streaming slipping back into losses. Then the old argument starts again.
Position
Half position. Adding above the spring high.