All-Time High: Growth Initiatives Propelling Disney

Introduction:

Disney (DIS) has broken out to all-time highs. Their growth initiatives are beginning to bear fruit with Wall Street embracing its growth strategy and rewarding shares with a higher price-to-earnings multiple. Disney is firing on all cylinders; posting one record-setting blockbuster after another, wrestling away full ownership of Hulu, launching a branded streaming service, record revenue numbers via pricing power at its Parks and Resorts and remediation of its ESPN franchise with ESPN Plus. Disney’s Avengers: Endgame is taking the torch beyond the $2 billion box office milestone, a feat that’s only been accomplished four times, one of them being Avengers: Infinity War last. Endgame has its sights set on surpassing Avatar as the highest grossing movie of all-time.

All the initiatives that Disney has taken over the previous few years to restore growth appear to be coming to fruition, namely it's Fox acquisition, and it's streaming initiatives. Disney continues to invest heavily into its streaming services (Hulu, ESPN Plus, and its Disney branded streaming service) to propel its growth and presence within this space. ESPN Plus launched less than a year ago and already has over 2 million subscribers. The company is evolving to meet the new age of media consumption demands of the modern consumer via streaming and on-demand content. I’ve been behind Disney for a long time, especially through this transition back to growth when the stock traded below $100 and I still feel that the company offers a compelling long-term investment opportunity given its growth catalysts that will continue to bear fruit over the coming years. However, given that the shares are at all-time highs in the backdrop of the longest bull market in history, caution is prudent.


New Star Wars Land

Disney has finally launched its much anticipated Star Wars: Galaxy's Edge at Disneyland in Anaheim, CA, with a dedication ceremony. The festivities included CEO Bob Iger and Star Wars legends including creator George Lucas and stars Mark Hamill, Billy Dee Williams, and Harrison Ford.

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Carol W 4 weeks ago Contributor's comment

Typical -the stocks I want are all at ATH's. I am long DIS NFLX -

Duncan Kingori 4 weeks ago Member's comment

Me too.