3 Reasons to Buy Disney Stock, and Why You Should Buy It in January

Stock Performance - Disney stock gained 24.5% in 2023, slightly underperforming the S&P 500's 25% gain [1] Streaming Business - Disney's streaming platforms (Disney+, Hulu, ESPN+) are now profitable, with entertainment streaming reporting $253 million operating income in Q4 2024, up from a$420 million loss last year [3][4] - Total streaming operating income reached $321 million in Q4 2024 [4] - Disney ended Q4 2024 with 174 million total streaming subscriptions, including 120 million core Disney+ subscriptions, a 4.4 million increase from last year [5] - Management expects an$875 million increase in entertainment streaming operating income in 2025 [5] Content Pipeline - Disney had the top 3 grossing films worldwide in 2024: Inside Out 2, Deadpool & Wolverine, and Moana 2 [7] - The company has 10 films slated for release in 2025, mostly sequels or based on previous content, including Avatar: Fire and Ash and live-action Snow White [8] - Disney's content strategy focuses on creating franchises that can be monetized across multiple platforms, including theaters, streaming, parks, and merchandise [9] Parks and Experiences - Parks and experiences segment saw a 1% sales increase but a 6% operating income decrease in Q4 2024 [12] - Management expects improvement as the American consumer strengthens and new attractions are introduced [12] - Disney's parks are considered unparalleled assets that differentiate the company in the entertainment industry [10][11] Financial Outlook - Earnings per share (EPS) increased from $1.29 to$2.72 for the year, with management guiding for a low increase in adjusted EPS for 2025 [5] - The company recently reinstated its dividend [13]