But the stock hasn’t been as stellar this year. Shares of Disney were down more than 2% even as the S&P 500 rose nearly 13% in the same time period. fiscal Q2
With the economy reopening in the U.S., investors need more proof that Disney’s cash cows are recovering at a healthy pace. Its fiscal Q2 showed the recovery might be a bit slower than initially anticipated. Theme parks revenue in the quarter fell 44%. AT&T’s core businesses are coming back with a vengeance this year, and the recovery in those segments is offsetting other losses. Not to mention, theShares of AT&T initially rose 2% Monday morning on the news, even as the broader markets were lower across the board. Though the stock eventually ended the day lower, the initial reaction was a clear sign investors were in support of the combined WarnerMedia-Discovery company.
Last year, there was so much uncertainty about how long it would take for companies to recover from the global pandemic. Thus, investors shifted their focus away from investing in fundamentals and instead put their money in media companies paving a path toward a successful future with streaming growth.
This is My commandment: that you love one another [just] as I have loved you. -John 15:12