"If you purchased shares The Walt Disney Company ( NYSE:DIS) around 11 years ago, you might not have a heck of a lot to show for your investment. Undoubtedly, the stock is pretty much going for prices it went for just over a decade ago. And while it's been a real test of investor patience, it's clear that Disney shares have been a trap for many years,"
"Whether it's the potential catalyst of a new CEO or an embracing of technology, I do think the next 10 years are highly likely to be better than the last 10. With shares trading at 16.5 times trailing price-to-earnings (P/E) at around $113 per share, the value gem might be worth picking up, especially since various hedge funds have been adding to their positions in recent quarters."
Disney shares have remained roughly flat over the past 11 years, delivering little capital appreciation for long-term holders. The stock experienced a brief surge during the 2021 pandemic lockdowns but has otherwise been underwhelming. A rise in AI productivity could help Disney by lowering costs and improving operations while the company searches for Bob Iger's successor. Shares trade at about 16.5 times trailing P/E near $113, and several hedge funds have increased positions recently. Disney is not a direct AI beneficiary, but it can leverage AI to cut content production costs and bolster earnings. Two AI-driven pathways could fuel a recovery, beginning with driving down content production costs.
Read at 24/7 Wall St.
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