Disney's Stagnant Earnings and Underperformance

13 days ago

Michael

"So, here's the deal, Jack. The earnings per share hasn't gone anywhere in a decade. The stock has underperformed on every single time frame for the last 30 years. I had Sean look at the 1 3 5 10 15 20 25 and 30 and it's underperforming on every time frame 30-year time frame. The S&P is up 10% per year and Disney 7. That's a big number. I'm glad you said that because the actual numbers are astounding and yeah, the company is phenomenally profitable. Its earnings aren't growing, but it's still making a ton of money. But the market doesn't value that."

The commentary highlights that Disney (DIS) has seen stagnant earnings over the past decade, resulting in underperformance relative to the broader market. Despite the company's strong profitability, Disney's growth in earnings has been limited, which, combined with a potentially misdirected strategic push (e.g., Disney Plus), has led to its stock lagging behind historical market returns.

Related Stocks