In this article, we will look at the 5 media stocks that got crushed in 2022. If you want to explore similar stocks, you can also read “First digital advertising recession”: 10 Media Stocks Crushed in 2022.
5. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
Year to Date Loss as of August 5: 31.98%
While The Walt Disney Company (NYSE:DIS) is having a tough year in 2022 because of macro headwinds, analysts are positive on the company’s ability to drive outperformance. On July 26, Goldman Sachs analyst Brett Feldman slashed his price target on The Walt Disney Company (NYSE:DIS) to $130 from $148 and reiterated a Buy rating on the shares. The analyst cut his price target to reflect the negative historic correlation between macro trends and the TV advertising industry.
On July 27, Evercore ISI analyst Vijay Jayant lowered his price target on The Walt Disney Company (NYSE:DIS) to $130 from $150 and maintained an Outperform rating on the shares. The analyst likes the company’s “credible streaming strategy”.
As of August 5, The Walt Disney Company (NYSE:DIS) has plummeted by 31.98% year to date.
At the close of Q1 2022, 113 hedge funds were long The Walt Disney Company (NYSE:DIS) and held stakes worth $5.16 billion in the company. This is compared to 111 hedge funds in the previous quarter with stakes worth $6.94 billion.
As of June 30, Markel Gayner Asset Management owns over 1.9 million shares of The Walt Disney Company (NYSE:DIS) and is the largest shareholder in the company. The investment covers 2.65% of the fund’s 13F portfolio.
Here is what Oakmark Funds had to say about The Walt Disney Company (NYSE:DIS) in its second-quarter 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.”
