Analysis: DIS

Shortly after the opening bell, we will be buying 50 shares of Disney (DIS) at a bid/ask of roughly $108.35/108.47. Following the trade, DIS (975 shares) will represent 4.09% of the portfolio.

Last Friday, we wrote in our Alert here about our interest in adding to Disney off its recent weakness. The shares had fallen to around $108 from $113 over the course of the week despite the completion of the long-awaited, content-enriching Fox asset acquisition which we wrote about here. The only thing that held us back from adding to our position during Friday's market selloff was our trading restrictions. Now that those have cleared, we will add to our position at these low prices.

With the Fox deal now completed, our attention is squarely focused on the highly anticipated April 11 Investor Day event that is quickly approaching. This is where management will unveil its new Disney+ app and provide greater clarity around its exciting direct-to-consumer strategy.

Between the Disney+, ESPN+, and Hulu (which the company has a 60% stake in), Disney has a three-pronged strategy to become a leader in streaming services. The wide-range of content each product contains appeals to all different types of consumer interests. Not only will these products deliver a new avenue of long-term revenue growth, they will also offset concerns related to cord-cutting, and therefore help the stock's multiple expand from its current levels.