🪄Disney, is the Magic returning?

Upwards since summer

If we look at the Disney chart we see quite an impressive upwards momentum over the past months. The stock is up +30% since August, where the company first time reported a positive return from their streaming business. The latest numbers from Q4 showed a net return of at least 100M USD. In addition the movie business is running well with Blockbusters like „Deadpool & Wolverine“ or „Inside Out 2“.

Still long way to go

Despite the progress we can see during the last two quarters there’s still a long way to go if we look at the big picture. Disney stock is still far from the old ATH at around $200 and with only a +26% return over the last decade. That‘s not even mediocre if we compare it with the S&P 500 index for example.

The Parks & Entertainment segment still has some problems with more or less flat turnover and declining profits. In addition there’s still no successor for aging CEO Bob Iger. This triggers some uncertainty about the long term strategy.

My view

For me Disney is currently a hold position. They still have to prove if they can make the magic return for more than one or two quarters. It’s good they are able to pay out a dividend again but I am still cautious.

What do you think? Turnaround running or dead cat bouncing?