5 Risky Stocks to Buy Today

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 109

The Walt Disney Company (NYSE:DIS) is a California-based diversified media and entertainment conglomerate.

The Walt Disney Company (NYSE:DIS) is in the middle of the streaming war against notable players like Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Apple Inc. (NASDAQ:AAPL). Disney Plus has become the biggest streaming service in the world by surpassing Netflix with 152 million paying subscribers as of Q2 2022. The company saw its subscribers increase by 31% YoY.

The Walt Disney Company (NYSE:DIS) is also looking into merging Hulu with Disney Plus. Presently, Hulu is a joint venture between Disney, with a majority interest of 67% of the company, and Comcast Corporation (NASDAQ:CMCSA), owning the rest. Disney Plus is also aggressively trying to bring additional users into its platform by launching an advertisement-based streaming service.

Oakmark Funds discussed its outlook on The Walt Disney Company (NYSE:DIS) in its Q2 2022 investor letter. Here’s what the firm said:

“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”

Overall, 109 funds held a stake in The Walt Disney Company (NYSE:DIS) as of Q2 2022.

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