Tuesday, February 27, 2024
Hometalking numbersFace-lift ahead for Disney?

Face-lift ahead for Disney?

If you believe the NY Post (and who doesn't), Facebook COO Sheryl Sandberg could soon be in the running to rule the Mouse House when current CEO Bob Iger retires in 2016.

Under Iger, Disney stock is up almost 200% and is at all-time highs. So would a possible Sandberg-Disney hook-up mean even more gains for Magic Kingdom, and is it a reason to buy the stock now?

CNBC contributor Zachary Karabell, Head of Global Strategy at Envestnet and President of RiverTwice Research, believes there are other reasons to own Disney than rumors about who will be running the company two year from now.

(Read: )

"If you think Disney is firing on all cylinders as a robust multimedia/theme park/movie/entertainment company…. that's a good reason to own Disney," says Karabell who is long Disney's stock. "Speculating who the CEO is going to be in a bunch of years… is not why one owns the stock currently."

Steven Pytlar, Chief Equity Strategist at Prime Executions, sees Disney's stock chart as a fairly simple one has been moving fairly close to a single trend line since October 2011. The stock has nearly tripled in the last three and a half years.

"In the charts, there are really no surprises at all," says Pytlar. "What that uptrend tells us is that the company is building value and the stock price is reflecting that. Current holders don't want to sell anything and people who don't own it are trying to buy it and accumulate it, pushing the price higher. We would think that it continues to climb that trend."

(See: CNBC's Media Money)

But, according to Karabell, there's more to owning the stock than just its price trend.

"I own this because I think it's a really good proxy for consumer entertainment spending in the United States and globally," says Karabell. "It's not high beta. It is not unbelievably sexy and that's probably good."

To see the full video from CNBC's Street Signs' Talking Numbers segment about Disney with Karabell on the fundamentals and Pytlar on the technicals, watch the video above.

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