Why Pete Najarian Bought Disney Stock This Morning

Walt Disney Co DIS is trading lower Thursday after the company announced weak fiscal fourth-quarter financial results.

What Happened: Disney reported quarterly adjusted earnings of 37 cents, which came in below the estimate of 44 cents. The company reported quarterly revenue of $18.53 billion, which beat the estimate of $16.26 billion.

Disney+ paid subscribers totaled 118.1 million, up from 73.7 million year-over-year.

See Also: Quick Take Technical Analysis: Walt Disney Co

Why It Matters: Market Rebellion co-founder Pete Najarian took advantage of the pullback and bought Disney shares around $160.

"I was just waiting for one of these kind of days where it's a flush day, everybody wants out," Najarian said on CNBC's "Fast Money Halftime Report."

The forward price-to-earnings ratio became a little stretched when Disney stock ran up to the $200 level, but at current levels, it's much more reasonable, he noted.

"What I really liked about the quarter is they are going to go international in a much bigger way with the streaming," Najarian said.

He believes the market is a bit saturated in the U.S., but sees plenty of opportunities internationally because "it feels like that Netflix moment where everybody says 'well, you know what, it's saturated who else is going to get in?' And all they did was go international and absolutely take over."

"This is a good entry point now and I think there is room. I don't expect this thing to zoom to the upside, but I think this does give you room to the upside over the next ... year or two," Najarian said.

DIS Price Action: Disney has traded as high as $203.02 and as low as $134.10 over a 52-week period.

The stock was down 6.48% at $163.15 at time of publication.

Photo: HenningE from Pixabay.