The world’s largest entertainment company, Disney COVID-19-related restrictions have caused many operational problems for (DIS) over the last year. While the company reported solid year-over-year growth in its most recent quarter, it missed Wall Street’s expectations. After the earnings report, the stock’s price dropped. So, the question is, considering DIS’ stretched valuation, should one buy it on the recent dip? Read on.Leading entertainment company Walt Disney Co. (NYSE:) operates parks, media and entertainment distribution, and three content groups—studios, general entertainment, and sports—that are focused on developing and producing content for DTC, theatrical and linear platforms. The shares of the Burbank-based media company are currently down 13.2% year-to-date. Over the past month, the stock has slumped 10.8% to close yesterday’s trading session at $157.33. The stock currently trades at a lower level than its moving averages of 50 and 200 days.

The COVID-19 pandemic, which caused lockdowns and the closure of several of the company’s theme parks, and the suspension of cruise line departures and other operational disruptions has taken their toll. Significant revenue losses were suffered by the company. The company was able to continue operating its Disney+ streaming services without major revenue losses. Disney+ launched the “Black Widow”, which made $80 million domestic box office receipts, in its debut weekend. It was also the most successful premiere of the pandemic since it began.

DIS shares fell 7% after they reported a slowdown of subscriber growth. Also, consensus estimates of the top and bottom numbers for the last quarter were not met by Disney. Disney added 2.1 million Disney+ subscribers to hit 118.1 million, in line with CEO Bob Chapek’s prediction of “low single-digit millions” of fourth-quarter streaming subscribers back in September. DIS also faces threats from Amazon.com, Inc. (NASDAQ) and Netflix Inc.

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