Why or why not buy Disney?
Greetings, all! I’ve starting trading with some success, but I’ve been careful. I think I’m attracted to value companies, because the economics make sense to me.
I’m having trouble understanding the benefit buying a company like Disney at $90 (after hours), which lacks a dividend and has a PE of 57. I’m comparing it to stocks like Ford (4% dividend, PE of 6).
I know there are many growth stocks like Disney, but none of them seem to have the intrinsic value to justify their prices: I submit Google. Meta, Carvanna, AMD, NVIDIA, etc, etc, that just deflated when the next [sucker] chose not to buy the inflated asset.
I know I’m missing something, so I’m hoping all of you kind souls can educate me. It seems Disney is oversold, but the rational part of me thinks the stock should be trading at $40.
I appreciate your sage advice and wisdom.
$Disney(DIS.US$ $Meta Platforms(META.US$ $Advanced Micro Devices(AMD.US$ $NVIDIA(NVDA.US$
I’m having trouble understanding the benefit buying a company like Disney at $90 (after hours), which lacks a dividend and has a PE of 57. I’m comparing it to stocks like Ford (4% dividend, PE of 6).
I know there are many growth stocks like Disney, but none of them seem to have the intrinsic value to justify their prices: I submit Google. Meta, Carvanna, AMD, NVIDIA, etc, etc, that just deflated when the next [sucker] chose not to buy the inflated asset.
I know I’m missing something, so I’m hoping all of you kind souls can educate me. It seems Disney is oversold, but the rational part of me thinks the stock should be trading at $40.
I appreciate your sage advice and wisdom.
$Disney(DIS.US$ $Meta Platforms(META.US$ $Advanced Micro Devices(AMD.US$ $NVIDIA(NVDA.US$
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b34r : Making money off any stock really boils down to whether next *ahem* investor will take it off your hands at a higher price than what you paid for it. You can view PE as a statistical probability of that happening. So to be successful, it's not what you think the fair price should be, but what you think the public will think the fair price will be. Disney has branding, good management, healthy cashflow, etc etc. but yeah, everyone's idea of fair price will differ.