This article discusses the three stocks that Dan Loeb is buying for the rest of 2022. If you want to know about the fund’s journey, Mr. Dan Loeb’s career, and more about Dan Loeb’s 13F portfolio, please go directly to Dan Loeb is Buying These 7 Stocks for the Rest of 2022.
3. The Walt Disney Company (NYSE:DIS)
Third Point’s Stake Value: $94.400 million
Percentage of Third Point’s 13F Portfolio: 2.23%
Number of Hedge Fund Holders: 109
The Walt Disney Company’s (NYSE:DIS), headquartered in Burbank, California, is a global conglomerate of media and entertainment companies with a market capitalization of $209.98 billion. Since the start of the year, The Walt Disney Company’s (NYSE:DIS) returns have decreased by 26.52%, and over the past 12 months, they have decreased by 38.05% as of September 9.
After losing the broadcast rights to a well-known Indian cricket league earlier this year, Walt Disney Co. has now reached an agreement to show four years’ worth of international cricket matches to its Indian subscribers. The ICC announced on August 27 that Disney Star, the company’s worldwide streaming brand, has secured the contract for Indian TV and digital rights for both men’s and women’s International Cricket Council events through the end of 2027.
Moreover, in the most recent quarter, The Walt Disney Company’s (NYSE:DIS) announced better-than-anticipated subscriber counts for its Disney+ streaming service, escaping the slowdown that beset streaming rival Netflix Inc. Disney claimed 7.9 million additional Disney+ subscribers during the company’s fiscal second quarter, bringing the total to 137.7 million customers, up from 129.8 million the previous quarter. FactSet’s survey of analysts had predicted that the platform would gain 5.2 million net new customers, for a total of approximately 135 million.
In its Q2 2022 investor letter, Oakmark Fund mentioned The Walt Disney Company (NYSE:DIS) and explained its insights for the company. Here is what the fund 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.”
