Jan 30th 2023 Free Analysis - DIS

Hey Investors!

I’ve been struggling to get enough sleep these last few nights and one of the reasons is that I’ve been going to bed too late.  As a parent of a toddler the only time to sit back and watch a movie is at night after bedtime.  So it’s not always easy to get enough sleep and binge watch episodes of Limitless with Chris Hemsworth.  Speaking of, that’s one of many shows owned by today’s mover.  So let’s jump right in:

THIS WEEKS MOVERS SNAPSHOT

DISNEY (Stock Ticker: DIS) - Disney aka the wealthiest mouse in the world.  76% of Disney’s revenue is from movies and shows and the other 24% is from theme parks. And despite Covid’s impacts on the parks it would appear that Disney as a company is still expected to grow. 

Why DIS?

The movie and entertainment business is expected to grow an average of 7% over the next 7 years.  And Disney had 27% of the US and Canada box office in 2022.  This puts it in a great position to benefit from that increase in the movie and entertainment industry. If the industry grows, so does one of the largest players in it.

Why we feel there’s a buying opportunity:

1. Disney is scheduled to report their Q4 (sep-dec 2022) earnings February 8th.  And they’re expected to have done well. One of the reasons is Avatar 2: The Way of Water. It has made over $2 billion so far (that’s crazy!).  It’s actually the only movie to beat Avatar 1 by staying number one in the box office for 7 weeks! 

2. The stock dropped a lot from its high in March of 2021.  It went from $202.95 to $84 in December of 2022.  Now the stock is around $107 as of this e-mail.  Which means if the stock is on the path to recovery there could be an opportunity.

TERMS YOU NEED TO KNOW

Bear Market -  You may have heard this term.  It’s when the stock market starts to see drops of 20% or more in stocks.  Plus a bad feeling about the market in general.  Yes the market is very much about how people feel. There may be some math involved but it’s about how people feel the market is doing over all.  It’s like if you see a car swerving on the road. You can either feel like the car is going to recover and be able to go straight again.  Or you feel like the car is going to drive right off the road.  That’s what a Bear market is.  The market is swerving and people don’t feel like it’s going to be able to stay on the road.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk.  Even keeping your money in the bank comes with risk.  The risk isn’t very high for keeping your money in the bank, but there’s still a risk.  Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation.  So it’s important to understand the different levels of risks that come with investing of all kinds.  We would not recommend investing in individual stocks as a retirement plan.  If you’re interested in investing in stocks for other reasons, the analysis we give you could help.  But we have to be clear, these are NOT recommendations, this is analysis.  We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

We're listening!

We want to thank you again for being part of the MPA family. We really want to make this YOUR financial newsletter. So we want to hear from you. 

See you on Thursday!Thibaud & PhilipFun fact about us: We both feel strongly about giving people access to things they don't typically have to balance the odds.  May they be in your favor.