A Bull Vs. Bear Debate On Disney's Decision To Focus On Streaming

Walt Disney Co DIS decided to primarily focus on streaming video. This isn't a move that should be celebrated by investors, according to Strategic Wealth Partners CEO Mark Tepper.

Disney Moving The Wrong Way: Disney's reorganization of its media business "completely kills the allure" of its new Disney+ streaming service, Tepper said on CNBC's "Trading Nation." The original selling point to investors was that it won't have to spend a lot of money on content for the streaming business and this would support margins.

Not only does it seem that Disney is "headed in the opposite direction," but Tepper said it will have to pivot away from releasing around five blockbuster films towards diluting content to increase quantity.

"I definitely would not be buying this thing at $130," Tepper said. "Maybe I'd get interested under $110."

Related Link: The Pros And Cons Of A Disney Dividend Cut

Disney Can Never Go Out Of Style: Disney is a brand that can never go out of style although a reorganization can get "a little bit messy," Piper Sandler's chart guru Craig Johnson also said on "Trading Nation." If any company can pull it off, it's definitely Disney.

The Disney chart is also supportive of Mickey and Minnie at these levels, he said. The stock continues to recover from its March lows and showing signs of a rally and a move above $136 per share could mark the beginning of "another leg higher."

Disney traded around $125.60 at publication time.