Walt Disney Co (NYSE:DIS) reported a better-than-expected quarter, but the stock is trading lower Thursday.
What To Know: Market Rebellion co-founder Jon Najarian was surprised by the market's reaction to what he viewed as a strong quarter, so he decided to take advantage of the opportunity.
"At $101 [per share] I decided, yep I'm going to buy some stock," Najarian said Thursday on CNBC's "Fast Money Halftime Report."
Most investors are focused on the subscriber numbers and although the streaming results showed strong growth, that's not what will boost the stock in the short term, he said.
"You're not making money with the subscribers. It's just a money pit," Najarian stressed.
See Also: Walt Disney Analysts React To Q2 Earnings, Subscriber Beat, Ongoing Asia Weakness
Total Disney+ subscribers reached 137.7 million in the quarter, up 33% year-over-year, but he was focused on strong ESPN numbers and high demand for movies, as well as the growth in the parks.
"And when you get them into those parks, they're riding on ... rides that are based on Disney movies and things like that," Najarian said of the flywheel effect of Disney's business.
Disney said quarterly revenue for its parks, experiences and events segment totaled $6.65 billion in the quarter, an increase of 110% year-over-year.
"I think this is going to continue to do well and at $101 ... I think you've got a value here that I just couldn't dismiss," Najarian said.
DIS Price Action: Disney shares are trading near 52-week lows on Thursday.
According to data from Benzinga Pro, the stock closed down 0.9% at $104.31.
