Is Disney a Good Buy or a Risk?

Early Bird Prime for October 6, 2024

The Walt Disney Company (NYSE: DIS)—the magical kingdom where dreams come true, and apparently, where stock prices like to play hide and seek. It's been a rollercoaster year for media stocks, and Disney is no exception. 

With a modest 4.89% increase in 2024, it's like the stock is trying to grow but seems to be stuck. Should you invest in Disney stock now, or is it time to let it go, let it go?

The financial results for Disney this year have been inconsistent. One minute they're down, the next they're up, and sometimes they're just plain sideways. 

Disney’s theme park business, in particular, has been the ugly duckling of the bunch. Operating income for domestic parks has taken a nosedive, thanks to higher costs.

But just when you thought Disney was doomed, the stock has suddenly jumped 7% in the last 30 days. It's like the stock got a pep talk from Tinker Bell and decided to sprinkle a little pixie dust on its performance. 

This week, Seaport Research upgraded Disney to a Buy rating, setting a price target of $108. This is the same Seaport that downgraded Disney in the summer.

Seaport's newfound optimism is based on a "better macroeconomic outlook going forward." Translation: they think the economy is going to get better.

But what does this mean for you, the potential investor? Should you buy Disney stock now and hope for a happily ever after, or should you avoid it like a poisoned apple? Well, here’s the answer:

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