Billionaire Ray Dalio is Dumping These 5 Stocks

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 112

Number of Shares Owned by Ray Dalio’s Fund in Q2: 335.91K

The Walt Disney Company (NYSE:DIS), commonly known as Disney, is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.

Evercore ISI analyst Vijay Jayant lowered his price target on The Walt Disney Company (NYSE:DIS) to $115 from $140 and maintained an Outperform rating on the shares after fiscal Q4 results missed his consensus estimates and the company reset expectations, particularly for direct-to-consumer losses. The analyst stated that the company’s guidance of “high single-digit” revenue and operating income growth in the fiscal year 2023, compared to consensus expectations for 11% revenue growth and 25% segment OI growth.

At the end of the third quarter of 2022, 112 hedge funds in the database of Insider Monkey held stakes worth $3.89 billion in The Walt Disney Company (NYSE:DIS), compared to 109 in the previous quarter worth $3.2 billion.

In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:

“The Walt Disney Company (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 before 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.”