5 Best Stocks to Buy on Robinhood for Beginners

4. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 99

Entertainment giant The Walt Disney Company (NYSE:DIS) has been gaining investors’ attention in 2023 amid the return of Bob Iger and the steps he’s taking to turn the company around. Recently, The Wall Street Journal reported that most of the Disney+ subscribers kept using the service despite the recent $3 per month price increased. This shows there’s more room for price increases in the future.

As of the end of the fourth quarter of 2022, 99 hedge funds had stakes in The Walt Disney Company (NYSE:DIS). The biggest stakeholder of The Walt Disney Company (NYSE:DIS) during this period was Nelson Peltz’s Trian Partners which has a $785 million stake.

ClearBridge All Cap Growth Strategy made the following comment about The Walt Disney Company (NYSE:DIS) in its Q4 2022 investor letter:

“We exited The Walt Disney Company (NYSE:DIS) to focus on areas of the media industry with better risk/reward. Disney has significant exposure to consumer spending that is showing early signs of weakening. We decided to move on from the name as its traditional linear programming business is dissolving more quickly than expected, while its Disney+ streaming business cannot offset the affiliate fees and advertising revenue that the company has relied on for years. Disney’s parks business has done well recently due to strong pricing power but we have concerns that consumers will continue to spend on such discretionary purchases in a recessionary environment. At this point in the cycle, we believe Netflix has more ways to innovate and improve profitability.”