4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
The Walt Disney Company (NYSE:DIS) is an American multinational entertainment and media conglomerate that owns and operates amusement parks, film studios, gaming studios, web portals, broadcasting channels, and radio and streaming platforms.
Renaissance Technologies first invested in The Walt Disney Company (NYSE:DIS) back in Q2 2011, and by the second quarter of 2021, the hedge fund held 1.76 million shares of The Walt Disney Company (NYSE:DIS), worth $310.76 million. Jim Simons’ fund sold out of its position in The Walt Disney Company (NYSE:DIS) in Q3 2021.
The Walt Disney Company (NYSE:DIS) posted its Q4 results on February 9, reporting earnings per share of $1.06, exceeding estimates by $0.43. The quarterly revenue gained 34.28% from the prior-year quarter, totaling $21.82 billion, outperforming estimates by $858.24 million.
The Walt Disney Company (NYSE:DIS) reported on February 8 that it expects Disney+ streaming subscribers to grow by approximately 7 million on a quarter-over-quarter basis, as compared to 2.1 million new subscribers brought on during the prior quarter. The Walt Disney Company (NYSE:DIS) has targeted bringing on between 230 million to 260 million subscribers in total to the service by the end of FY24.
Evercore ISI analyst Vijay Jayant on February 11 lowered the price target on The Walt Disney Company (NYSE:DIS) to $190 from $200, owing to a deflation of the streaming valuation multiple in his sum-of-the-parts framework, but kept an Outperform rating on the shares after the company reported fiscal Q1 results that he said “showed strength across business segments”.
Coatue Management held the biggest stake in The Walt Disney Company (NYSE:DIS) as of Q3 2021, with 5.85 million shares worth approximately $990 million. Overall, 101 hedge funds were bullish on The Walt Disney Company (NYSE:DIS), down from 112 funds in the quarter earlier.
Here is what RiverPark Funds has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2021 investor letter:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
