5 Best Media and Entertainment Stocks to Buy Now

2-The Walt Disney Company (DIS)

Number of Hedge Fund Holders: 113

In its Q2 2022 investor letter, Oakmark Fund mentioned The Walt Disney Company (NYSE:DIS) and explained its insights for the company. Founded in 1923, The Walt Disney Company (NYSE:DIS) is a Burbank, California-based multinational mass media and entertainment conglomerate with a $200 billion market capitalization.

Here is what Oakmark Fund has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2022 investor letter:

“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”

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