5 Best Gaming Stocks To Buy Now

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 113

The Walt Disney Company (NYSE:DIS) is an American global entertainment company that functions through two segments – Disney Media and Entertainment Distribution and Disney Parks, Experiences and Products. The company has a separate gaming division, Disney Interactive Studios, that partners with third-party video game developers and builds games for iOS and Android under its label, Disney Mobile.

Morgan Stanley analyst Benjamin Swinburne assigned an Overweight rating to The Walt Disney Company (NYSE:DIS) on June 30 and lowered the price target on the stock to $125 from $170. The analyst lowered his Disney+ estimates to account for lost IPL cricket rights in India and softer demand, and he now expects 220 million subscribers in FY24. However, the analyst sees an attractive risk/reward at present share levels, noting that the stock is down 40% year-to-date and trading below The Walt Disney Company (NYSE:DIS)’s pre-Plus launch share price. He expects 20% to 25% adjusted EPS growth for the company over the next three years, he added.

The Walt Disney Company (NYSE:DIS) was part of 113 hedge fund portfolios at the end of March 2022, up from 111 in the preceding quarter. According to Insider Monkey’s data, Matrix Capital Management is the largest position holder in the company, with 6.33 million shares worth $868.2 million. 

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about The Walt Disney Company (NYSE:DIS) in its Q4 2021 investor letter:

“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. Disney announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. Disney has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”