Disney Will Be Significantly Less Profitable Going Forward

6/16/20

By Vladimir Dimitrov, CFA, SA

Retail excitement is running high around Disney's stock on the back of the company's eye-popping DTC subscriber growth numbers.

However, DIS is facing a period of structurally lower profitability which will weigh on its valuation.

Box Office market share matters a great deal as there is a significant spillover effect from the Studio Entertainment segment to Disney's other business units.

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