Loop Capital Markets’ president prefers Disney over Peloton: here’s why
- Kourtney Gibson is confident that Disney stock will eventually take off.
- Disney Plus is expected to boast up to 250 million subscribers by 2024.
- Gibson says there's still some window to get on the Disney stock.
Six months into the year and The Walt Disney Company (NYSE: DIS) is still trading in the stock market around the same price at which it started 2021. But Loop Capital Markets’ president Kourtney Gibson is confident that it’s only a matter of time before Disney stock takes off.
Gibson has been buying Disney and slimming his stake in Peloton – the exercise equipment and media company that is currently close to 20% down on a year-to-date basis.
Kourtney Gibson’s remarks on CNBC’s “Halftime Report”
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Expressing her enthusiasm for Disney, Gibson said on CNBC’s “Halftime Report”:
“Disney is a name that has so far not seen a comeback that I would have expected. Let’s be clear; Disney is a brand, a global brand that functions like a machine. And when you get a machine, you could let it hum along, and it’ll do just fine, which Disney will, but instead, they continue to innovate, they continue to add.”
The stock took an unprecedented hit last year due to the Coronavirus pandemic that pushed its parks into shutting down for the better part of the past fifteen months. On the other hand, Gibson highlighted that Disney Plus now has the second-largest subscription base after Netflix.
Disney Plus to boast up to 250 million subscribers by 2024
Disney Plus added one million subscribers from February to July. The streaming service is expected to boast up to 250 million subscribers by 2024. In comparison, Netflix has more than 207 million subscribers at the moment, and Gibson still thinks that Disney is underestimating the number.
“They continue to bring out new shows. I think as theatres continue to reopen and society gets back to a continued sense of normalcy, Disney is going to knock the cover off the ball. It’s a safe bet that you’re going to get growth out of. Where else do you get to see that kind of growth in a name that has been around for as long as Disney has.”
As per Gibson, there is still a small window to get on the Disney stock.