Disney Stock Has a Long Way to Bounce Back
Disney (NYSE: DIS) is falling out of favor with investors. The same media giant that was dazzling the market with its multiplex blockbusters, top-shelf theme parks, and Disney+ buzz has been slipping since hitting all-time highs this summer. The stock is now trading 12% below the unprecedented high it scored in July, while the market is just 2% away from revisiting its peak summertime position.
With earnings around the corner, Wall Street's getting cold feet over the once-hot Disney, and Alexia Quadrani at J.P. Morgan became the latest analyst to scale back her projections for Disney's fiscal fourth quarter that ended last month. She thinks the money Disney is investing in its upcoming namesake streaming service and its other direct-to-consumer platforms is going to sting the bottom line in the near term. She's also concerned that the recent acquisition of key Fox assets will create some bumps during these first few quarters of the integration process. She lowered her earnings estimate to $0.95 a share for the fiscal fourth quarter on Wednesday, down from her previous forecast of $1.05 a share in profitability.
Image source: Disney.
Source Fool.com
