The battle of the streaming wars is between four streaming giants: The Walt Disney Company (DIS), Netflix (NFLX), Amazon.com (AMZN) and Apple Inc. (AAPL).
Each company has been working on upping its streaming game in the past year, rolling out new television shows and feature films. Netflix had 10 original films receive Oscar nominations this year; AppleTV+’s “CODA” won three Oscars for Best Actor, Best Supporting Actor and Best Adapted Screenplay; and Disney won six Oscars.
Today, I want to focus on Disney, because despite the company’s slew of award-winning movies, its stock isn’t winning any awards in the stock market. It was one of the weakest performers in the Dow and traded to a new 52-week low in mid-March 2022.
The reality is the company’s fundamentals have been under pressure after its subscriber growth slammed on the brakes late last year. In its fourth quarter of fiscal year 2021, Disney brought in 2.1 million new subscribers, which was a far cry from analysts’ expectations for 10 million new subscribers. Total subscribers rose to 118.1 million, but this was still below analysts’ projections for 125 million total subscribers. In addition, average monthly revenue per subscriber dipped 9% year-over-year.
Now, growth did pick up in Disney’s first quarter for fiscal year 2022. Adjusted earnings came in at $1.06 per share, well above adjusted earnings of $0.32 per share in the same quarter a year ago. Revenue increased 34% year-over-year to $21.8 billion. It also added 11.8 million new Disney+ subscribers.
Looking to the second quarter, analysts are calling for earnings of $1.04 per share on revenue of $17.94 billion.
So, it makes sense that my proprietary stock-trading system gives Disney stock a B-rating for its Fundamental Grade. But its “Quantum Score” is a whole different story. It’s a big reason why the stock receives a D-rating overall, making it a “Sell.”
I will explain why the Quantum Score impacts the overall stock grade in tomorrow’s Prediction 2022 event. Remember, it’s scheduled for 4 p.m. Eastern time and it should last about an hour. If you haven’t already registered, you can do so here now.
Also during tomorrow’s Prediction 2022 event, we’ll discuss:
- A certain type of investment I urge you to buy immediately…
- The #1 stock to buy now…
- A stock poised to crash…
- And how you can position yourself for six money-doubling opportunities in the next 12 months.
We have a lot to cover. Again, the Prediction 2022 event will officially go live at 4 p.m. tomorrow. I hope to see you there!
To register for the event and receive a reminder before we go live, simply go here.
P.S. Disney isn’t the only stock with a “Sell” rating. There are 13 other stocks my proprietary stock- trading system is flagging as a “Sell” right now. I list them all for you in my brand-new report, 13 Stocks to Sell Now, which I’ll send you for free after signing up for my Prediction 2022 event.
Some of these are blue-chip stocks, while others are popular pandemic stocks. If you own any of these 13 stocks, you’ll want to sell them right away. Click here to sign up for Prediction 2022 and to access your report now.
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