Summary
- Investors expected rough results and they got it. Now, investors are looking ahead, and starting to think about 2021.
- Disney to launch a new international streaming platform called Star, that will hold all its own content, with no third-parties.
- Disney's stock is undervalued and offers investors upside potential.
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Investment Thesis
Disney's (DIS) shareholders were fully braced long ago for these results. And these results were as bad as expected, but not worse.
Looking ahead there's plenty to be optimistic about in Disney. Disney's direct-to-consumer strategy is not only continuing to impress, but Disney is now growing a new streaming platform into international markets.
With the amount of negativity already priced into its stock, Disney should return at least 30% upside potential over the next two years -- thereby minimally returning to former highs.
(Source)
Disney's Worst Quarter Is Now Over
Source: author's calculations
Disney was one of those companies at the epicenter of COVID-related disruptions. Even though it's not clear sky from here on out, these Q2 2020 results are probably as rough as its likely to get.
