In the second quarter of 2024, The Walt Disney Company, a beacon of entertainment and wonder for generations, faced some turbulent waters. Despite the ever-growing popularity of AI-driven stocks propelling many equity indexes to new heights, Disney (NYSE:DIS) experienced a mixed quarter.
The latest investor letter from the Invesco Growth and Income Fund shone a spotlight on these developments, noting that while Disney’s earnings surpassed analysts’ expectations, its revenue numbers fell short. This revenue shortfall, coupled with a slowdown in their theme park business, led to weaker forward guidance, casting a shadow on the company’s otherwise stellar performance.
The fund’s underperformance in the second quarter was partially attributed to stock selections in the industrial and healthcare sectors, where it fell short of expectations. On the other hand, strategic choices in the communication services and financial sectors offered some respite. Disney’s shares, meanwhile, saw a modest 5.86% increase over the last 52 weeks, but the one-month return was a slight dip at -0.13%. As of August 19, 2024, Disney’s stock was priced at $90.82, boasting a market capitalization of $164.71 billion.
Interestingly, despite these challenges, Disney retains its allure among hedge funds, with 92 hedge fund portfolios holding its stock by the end of the second quarter. This number remained consistent with the previous quarter, showcasing a sustained belief in Disney’s long-term potential.
As fans and investors of this beloved entertainment giant, what are your thoughts on Disney’s recent performance? Do you foresee a magical turnaround in the next quarter, or do these trends hint at deeper issues? Share your thoughts and join the discussion below!
Source: Soumya Eswaran
