It’s a bad day for Wall Street generally, but it’s especially dreary for Disney: Its shares are down 5.2% in afternoon trading — for a 10.3% drop so far this month — after Barclays’ Kannan Venkateshwar downgraded the stock to “underweight.”
This is the latest in a series of wary reports as analysts look past the success of Star Wars: The Force Awakens to potential problems — including likely continued subscriber losses at ESPN, the company’s biggest profit driver. It had 92 million subscribers at the end of the 2015 fiscal year, a drop of 3 million from 2014 and down 6 million from 2013. ...
For months and months of 2015, stock analysts were giddy with Diz Co.'s prospects. Star Wars would go throw the roof (it did). Everything else at the company was firing on eight cylinders (turns out such was not the case). And there just was not a gray cloud in sight.
Until there was.
Now ESPN steadily leaks viewers, and since ESPN is a huge part of Disney's portfolio, things don't look sunny. This is another lesson about gloating over specific eggs in your basket, because over time eggs have a way of going bad.
It's another lesson to me (like I needed one after 2008?) not to invest in single stocks. And I don't.