Ariel Investments LLC - Ariel Global Fund on The Walt Disney Company
Thesis
Disney reported better-than-expected earnings but declined as investors questioned the sustainability of the earnings beat. Ariel continues to view the company as a unique collection of high-quality media, streaming, parks and consumer franchises. The thesis rests on the long-term value of these franchises despite near-term uncertainty around sports economics and consumer spending.
“we continue to view Disney as a unique collection of high-quality media, streaming, parks and consumer franchises”
Key risks
- Sports earnings may weaken as programming-cost timing normalizes
- Softer consumer spending
- Near-term earnings visibility