Stock Market Sell-Off: Is Disney Stock a Buy?
We are in a bear market, and Walt Disney (NYSE: DIS) hasn't escaped its crosshairs. Down 35% year-to-date, the House of Mouse has left investors in a world of pain despite some encouraging developments in its direct-to-consumer video streaming businesses. But there is light at the end of the tunnel for patient investors.
It's hard to find a better example of perfect timing than Disney's 2019 release of its streaming platform, Disney+. The service arrived just in time for the COVID-19 pandemic, in which millions of people turned to at-home entertainment to cope with lockdowns and movement restrictions during the crisis. The direct-to-consumer business is supercharging Disney's revenue and could soon boost the company's bottom line.
In the third quarter, combined direct-to-consumer video (Disney+, ESPN+, and Hulu) subscriptions grew 27% to 221.1 million. For context, major rival Netflix boasts just 220.7 million subscribers despite having a 15-year head start in video streaming.
Source Fool.com
