Disney: OpenAI Deal, Warner Bros. Acquisition, And The One Magical Metric
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YR Research5.14K FollowersFollow5ShareSavePlay(9min)CommentsSummaryDisney continues to underperform, with stagnant revenue growth and a decade of lackluster returns versus the market.DIS's core Entertainment segment is stagnating amid secular declines in Linear Networks and insufficient DTC momentum, while Sports and Experiences remain stable but cannot offset overall sluggishness.The OpenAI deal is viewed as neutral for growth prospects, while a potential Warner Bros. sale to Netflix poses strategic risks for DIS's streaming and content businesses.I maintain a 'Hold' rating on DIS, as 3%-5% revenue growth and a 17x P/E do not justify a bullish stance given current fundamentals. winhorse/iStock Unreleased via Getty Images Disney (DIS) shares are set to close another year of disappointing performance, with the stock flat year-to-date, continuing a decade-long trend of severe underperformance vs. the market. While investors discuss the implications of a recently announced OpenAI deal and theThis article was written byYR Research5.14K FollowersFollowI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.