Connect with us

Hi, what are you looking for?

Investing

Disney stock just got downgraded at Wolfe Research: find out more

Walt Disney Co (NYSE: DIS) is in focus this morning after a Wolfe Research analyst turned dovish on the entertainment conglomerate.

Disney+ lost 4.0 million subscribers in Q2

On Friday, Peter Supino downgraded the California-based company to “peer perform” and suspended his price objective on the stock.

His view is based primarily on the company’s direct-to-consumer business that the analyst warns will be slow in reaching profitability.

The DTC subscriber and linear TV outlooks keep deteriorating. DTC plan for > subs, > prices and < cost seems like cognitive dissonance.

Earlier this week, the mass media company said its flagship streaming service lost 4.0 million subscribers in the second financial quarter (read more). Consequently, Disney stock lost more than 10% in recent sessions and is now down about 20% versus its year-to-date high.

Why else did he turn dovish on Disney stock?

Disney could also take a hit if the U.S. economy slides into a recession that tends to hit advertising.

Supino turned dovish on Disney stock as he expects cutting promotional and SG&A expenses to be a headwind for the direct-to-consumer business in terms of gross additions. His research note reads:

Today’s late cycle consumer environment and deteriorating direct-to-consumer and linear revenue growth leave us more concerned about forecasting risk and time decay.

To that end, he’s not entirely convinced that Disney’s plans of raising prices later this year will be a good idea. Also this week, CEO Bob Iger confirmed that Hulu content will soon be added to the Disney+ streaming app.

The post Disney stock just got downgraded at Wolfe Research: find out more appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    President Biden is asking Congress to approve nearly $100 billion in emergency funding to aid recovery efforts for the recent deadly storms that ravaged...

    Stock

    One hallmark of secular bull markets is rotation. When leading stocks, sectors, and industry groups falter, there needs to be others that grab the...

    Latest News

    Vice President Kamala Harris spent a whopping $1.5 billion during her 15-week campaign that ended in defeat to President-elect Donald Trump, including burning through...

    Latest News

    Activists on Saturday demanded that the state of California pay millions of dollars to each Black resident in reparations as a way to make...



    Disclaimer: Frequencytraders.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Frequencytraders.com