The Walt Disney Company (DIS) Faced Challenges as Parks' Business Expectations Declined
Mairs & Power, an investment advisor, released the 'Mairs & Power Balanced Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The stock market reached a record high in February. However, tariff uncertainty in March led to a fall in equities, while fixed income benefited from perceived safety. The fund ended the quarter up 0.04%. The fund outperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), down 1.48%, and the Morningstar Moderate Allocation peer group, which fell 0.34%. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as The Walt Disney Company (NYSE:DIS). The Walt Disney Company (NYSE:DIS) is an entertainment company that operates through the Entertainment, Sports, and Experiences segments. The one-month return of The Walt Disney Company (NYSE:DIS) was 11.22%, and its shares lost 3.55% of their value over the last 52 weeks. On May 6, 2025, The Walt Disney Company (NYSE:DIS) stock closed at $92.17 per share with a market capitalization of $182.948 billion.
Mairs & Power Balanced Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q1 2025 investor letter:
"The Walt Disney Company (NYSE:DIS) also underperformed both the market and the sector as expectations for its economically sensitive parks business decline, although the company's underlying profitability has improved. Also, within the sector we have historically not held any of the telecom players who have had a more difficult time developing a sustainable competitive advantage."
The Walt Disney Company (DIS): Among Billionaire Mario Gabelli's Large-Cap Stock Picks with Huge Upside Potential
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held The Walt Disney Company (NYSE:DIS) at the end of the fourth quarter compared to 76 in the third quarter. While we acknowledge the potential of The Walt Disney Company (NYSE:DIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered The Walt Disney Company (NYSE:DIS) and shared billionaire Mario Gabelli's large-cap stock picks with huge upside potential. ClearBridge Value Strategy initiated a position in The Walt Disney Company (NYSE:DIS) during Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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