Ever wondered whether investing in the Walt Disney Company (NYSE:DIS) is a smart choice? Take a seat as we explore the insights from Oldfield Partners, a value-driven investment management firm, and their perspective on this iconic entertainment giant.
Founded by Richard Oldfield in November 2004, Oldfield Partners LLP specializes in contrarian investment philosophies and identifying undervalued stocks. The firm believes that hyped-up news can often distract investors from finding potential bargains. Oldfield’s strategic eye is now set on Disney, which currently forms 9.69% of their portfolio with a stake value of over $51 million.
Disney’s Q3 performance showcased a solid 2% revenue increase, thanks to their captivating intellectual property. Whether it’s the magic at domestic parks or the global cruise ventures, Disney’s parks and cruise sector is robust. Despite a slight decrease in demand, per capita spending still saw an uptrend. Although some expenses related to cruise ships might affect financials in the immediate future, upcoming blockbusters like “Moana 2” and “Mufasa” promise to buoy the entertainment sector.
ESPN’s new NBA deal is another feather in Disney’s cap. The agreement not only secures finals rights and international coverage but also aids ESPN’s transition to digital platforms, opening doors for fresh advertising and distribution opportunities. Add to this Disney’s haul of 183 Emmy nominations and a dynamic film lineup, and it’s clear the company’s intellectual property is performing admirably across various platforms.
Moreover, Disney’s advertising revenues are growing, driven by double-digit increases across ESPN and direct-to-consumer streaming services. Their new “Disney Streaming” capability enhances targeted advertising, ensuring better customer engagement and higher returns.
Source: Asra Isar
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