Is Now the Right Time to Buy Disney Stock?
With U.S. inflation remaining stubbornly high and federal interest rates expected to climb above 5% in 2023, much of the market is feeling the drag. The S&P 500 (SNPINDEX: ^GSPC) is down 20% since the start of 2022, but entertainment stocks in particular are having a tough time. Netflix has dropped 51% this year, while Warner Bros. Discovery has fallen some 47% over the same period. Walt Disney (NYSE: DIS) has performed better, but it has still seen a dip of 33%.
Disney distinguishes itself from its streaming competitors by owning and operating experiential businesses such as Disney Parks and Disney Cruise Line. However, because the company is such a consumer-focused corporation, many investors may ask if Disney stock is worth purchasing right now, especially with household budgets under strain. Let's break it down.
Walt Disney's entry to the streaming space started in earnest when it purchased a 27% stake in Hulu in 2009. In the years since, Disney has launched ESPN+ and Disney+. Walt Disney also owns India-centric streaming service Disney+ Hotstar, and has increased its stake in Hulu to 66%, with plans to take full control by the end of 2024.
Source Fool.com
