Out Fox The $treet

  Disney's stock is expected to rally in the short term due to the Penn Gaming deal and bouncing off the $85 support level. Disney's streaming business is struggling, with declining subscribers for the key ESPN+ service. The stock trades at 17x aggressive FY24 EPS targets, providing limited upside on any rally. After a horrible year,  Walt Disney Company  ( NYSE: DIS ) appears poised for a quick rally over the short term. The company has not resolved the problem in the streaming market with weak subscriber numbers and the  Penn  Gaming  ( PENN ) deal amounts to a very small deal to enter the gaming sector. My  investment thesis  is now bullish on Disney for a quick trade before the really tough market of the last couple of years has led to a double bottom for the stock around $85. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

The FQ4 results for Disney ( DIS ) were predictably weak. The ongoing weakness in cable networks was hidden last year by the strength of movies and the media giant is now getting hit by weaknesses in both segments. Incredibly though, the stock still trades near $100 and at levels that mostly exceed the price last year. Is now really the time to own Disney as the company embarks on a digital shift? Disney missed both top and bottom line analyst estimates in a sign of how bad the times are now. The media giant has missed revenue estimates for five consecutive quarters, but the company didn't previous miss EPS forecasts. Disney faces multiple issues that can't offset the positive momentum from their parks and resorts division.

Based on Nielsen's November estimates, ESPN owned by Disney (DIS) is collapsing faster than expected. The networks of ESPN, ESPN2, and ESPNU all lost over 600K subscribers for November alone.