Looks like the Woke Mouse is not liking its stock spanking! When any company commits to a profile which insults and angers its core market then a downturn is inevitable! Add to this the quick left turn to a Woke agenda only throws cold water on its constituents.
What do you think is going to happen?
Get this. Investment advisory company KeyBanc Capital Markets recently downgraded Disney’s stock due to concerns about the slow growth of subscribers to Disney+ and Hulu, lower attendance at its theme parks, and potential overpricing of the new ESPN streaming service.
The analysts also pointed out that Disney may have been too ambitious about content distribution profits and the stock had dropped last year with a similar financial setup this year.
As a result of the downgrade, Disney’s stock price took a spanking and fell hard. KeyBanc suggested Disney might need to raise prices for its streaming services and implement strategies to retain customers.
The analysts also noted that theatrical releases, such as “The Little Mermaid,” were expected to have smaller audiences at theaters. Moreover, while demand for sports on cable TV remained high, customers were not yet willing to pay for an ESPN streaming service.
The analysts highlighted the higher theme park attendance at Disneyland during its 100th Anniversary celebration was comparatively lower than the attendance at Disney World’s 50th Anniversary celebration, which were not in line with the company’s expectations.
Despite Disney’s optimistic outlook, the analysts predicted a deceleration of revenue between the third and fourth quarters.
Final Word: The Mouse had better return to a family first agenda or it will find itself in a Mousetrap it can’t escape!