5 Stocks that Will Bounce Back According to Reddit

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 92

The Walt Disney Company (NYSE:DIS) is having a difficult time amid huge competition from other streaming services and lack of growth. The Walt Disney Company (NYSE:DIS) was recently able to resolve its dispute with Charter Communications that had caused a blackout of Disney’s channels. Analysts believe The Walt Disney Company (NYSE:DIS) will continue to face challenges in the near term. For example, UBS Group AG (NYSE:UBS) recently said that The Walt Disney Company (NYSE:DIS) is having trouble maintaining its subscriber count amid competition and industry issues.

“Subscriber growth in the U.S. has effectively ground to a halt and international markets are not proving to be the fertile hunting grounds the media companies envisioned when launching their DTC services. We estimate the U.S. added <2M subscribers in 2Q, the lowest tally since we began tracking the metric in 2017,” UBS’ John Hodulik said in a note.

But Redditors believe the selloff around The Walt Disney Company (NYSE:DIS) is a good buying opportunity as the company could resolve its issues in the long term.

Diamond Hill Large Cap Strategy made the following comment about The Walt Disney Company (NYSE:DIS) in its Q2 2023 investor letter:

“Our bottom contributors in Q2 included health insurance company Humana, biopharmaceutical company Pfizer and global entertainment company The Walt Disney Company (NYSE:DIS). Disney’s Bob Iger returned to the CEO’s seat in November 2022, replacing Bob Chapek, who left following a turbulent tenure. As a result of disappointing quarterly results and incremental commentary suggesting a more inline strategy with other media, the market has become less confident that Iger will achieve a turnaround by the end of his 1.5- year contract. We continue to believe Disney has a unique collection of assets and owns some of the best content among all media companies. Their ability to monetize this content across many platforms — studio, theme park, toys, streaming — is incredibly valuable; thus we remain investors.”

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