I am assigning The Walt Disney Company (NYSE:DIS) a negative risk/reward rating based on its heightened risk of persistently lower profitability, intensifying competitive pressures, a rapid slowdown in streaming subscribers, and an elevated valuation. That being said, Disney remains the content king in the entertainment industry. If the company can fend off the competition while executing a successful offensive strategy across its streaming services, the future could once again belong to the magic kingdom.
Risk/Reward Rating: Negative
Disney shares are now down over 8% since reporting Q4 2021 earnings on November 10, 2021. The company missed consensus expectations for sales and profits.
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