Disney Stock: Bull vs. Bear
The Walt Disney Company (NYSE: DIS) is one of the most popular businesses in the world. Because it relies heavily on bringing large groups of people together in person, it was devastated at the pandemic's onset. The company is recovering but nowhere near full strength. The persistence of COVID-19, rising inflation, and macroeconomic headwinds threaten to derail that rebound.
Unsurprisingly, the House of Mouse would draw a mix of opinions about its worthiness as an investment. What follows is the bull and bear case for investing in Disney stock.
Disney's revenue fell by 6.1% to $65.4 billion in its fiscal year 2020. But that understates the magnitude of the damage the pandemic caused to the business. Sales from its more lucrative theme parks, cruise ships, and hotels were crippled. Those were replaced by revenue from its unprofitable streaming segments, which thrived during the pandemic. Disney's operating income fell to $3.8 billion in 2020 from $11.8 billion in 2019. That decrease more accurately reflects the extent of the downturn.
Source Fool.com
