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Walt Disney Receives Rare Wall Street Downgrade

By John F. Heerdink, Jr.

Reportedly, Walt Disney Company (DIS, $170.57) stock received a rare Wall Street downgrade as Barclays put forward bold changes from the entertainment giant to reverse slowing growth at its streaming service, Disney+. Last month, Disney Chief Executive Officer Bob Chapek informed that the fourth-quarter global paid subscribers will grow by “low single digit”, in comparison with a rise of 58.5 million in the previous three months. 

 “While the company (Disney) appears to be targeting one new piece of content a week, not every piece of content has the same franchise value or visibility,” stated Barclays analyst Kannan Venkateshwar.

Disney’s rival streaming platforms such as Apple TV+, Netflix Inc, and Amazon Prime Video have had a different approach, as they invested heavily in original content to attract subscribers. Disney needs to more than double its current pace of growth to at least the same level as Netflix, to achieve a target of 230 million to 260 million Disney+ subscribers by the end of fiscal 2024, informed Barclays. Disney+ had 116 million paying customers, while Netflix, which is due to report its quarterly results this week, had 209 million subscribers as of the quarter ended June.


Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.


Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Disney+ magic fades: Barclays downgrades Walt Disney after three years in Reuters)


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