This Stock Just Returned From The Dead! 💀

Summary

In this video, the speaker discusses Disney's recent stock rally, which surged 16% following strong earnings and positive guidance for the future. They analyze Disney's recovery, particularly in entertainment and parks, highlighting successful movie releases and improved profitability. Despite the strong performance, the stock's price has risen, making it less attractive for new buyers. For current shareholders, holding the stock remains a solid choice, with potential upside if Disney meets its ambitious growth targets. Overall, the speaker encourages long-term holding while cautioning that the opportunity for significant upside may be limited at the current price.

Takeaways

• 😀 Disney stock saw a 16% rally last week, driven by strong earnings and positive growth guidance.
• 😀 Shopify had an impressive week with a 22% increase, but the video focuses on Disney instead.
• 😀 Disney's stock has faced a slump, particularly after the pandemic, but is showing signs of recovery now.
• 😀 Disney’s recent earnings report exceeded expectations, with revenue growth and an improved profit outlook.
• 😀 The company’s long-term guidance for 2025-2027 includes double-digit EPS growth, which the market reacted positively to.
• 😀 Disney’s shift toward value and dividend-focused investors is boosting market confidence in the stock.
• 😀 The company has seen improvements in profitability, particularly in entertainment and Disney+ operations.
• 😀 The success of recent movie releases, like 'Inside Out 2' and 'Deadpool 3,' has helped revive Disney's profitability.
• 😀 Disney is expanding its cruise operations and making significant investments in its parks.
• 😀 Despite recent gains, the speaker feels the best buying opportunity for Disney was when the stock was around $82.
• 😀 At its current price of $115, the speaker sees limited upside but will continue holding their shares in Disney.

Q & A

What stock did the speaker initially mention in the video?

The speaker initially mentioned Shopify, noting its impressive 22% rise in the last five days. However, the main focus of the video was on Disney stock.

What was the performance of Disney stock last week?

Disney stock had a 16% rally last week, which the speaker considers a strong performance despite not matching Shopify's rally.

What financial metric exceeded expectations in Disney's recent earnings report?

Disney's earnings per share (EPS) exceeded expectations, with non-GAAP EPS coming in significantly better than anticipated.

What was notable about Disney's guidance for future years?

Disney provided long-term guidance, forecasting high single-digit EPS growth in 2025 and double-digit EPS growth for 2026 and 2027. This optimistic outlook was well-received by the market.

Why has Disney's stock been in a slump for the past couple of years?

Disney's stock suffered due to stagnation following the boom of Disney Plus and the pandemic-related closures of its parks. The company struggled to maintain consistent growth during this period.

What is the significance of Disney's recent profitability?

Disney's profitability is ramping up, with entertainment generating good profitability and strong results from its movie releases. This is key to attracting investors who focus on value and dividends.

Which Disney movies contributed to the recent success of the stock?

The success of *Deadpool 3* and *Inside Out 2* helped boost Disney's profitability. *Deadpool 3* in particular broke records, contributing to the positive financial outlook.

What does the speaker believe is a major factor for Disney's current stock rally?

The speaker believes that the market's positive reaction is largely due to Disney's stronger profitability, improved movie releases, and long-term growth expectations, all of which are appealing to value and dividend investors.

How does the speaker view the future potential of Disney's stock?

The speaker sees limited upside in Disney's stock at the current price of $115, but still views it as a solid hold for long-term investors, especially if Disney exceeds its expected growth or profit margin.

What is the current valuation of Disney stock, and how does it compare to earlier in the year?

Disney stock is currently valued at $115, up from $82 when it was previously discussed. While the stock has rallied, the speaker believes it may not offer the same attractive upside at its current price.