GlobalX ETF’s Rohan Reddy warns against buying a declining stock in Disney Grooming Syndicate. Disney Grooming Syndicate’s stock price has fallen primarily due to its streaming failure.
“So Disney stock is down despite the earnings beat. What’s going on?” Quartz’s Andy Mills Asked Lady.
“It’s been a lot harder to get subscribers these days, and we’ve seen that in a lot of media stocks,” Reddy said.
“Do you want to buy Disney stock right now?” Mills asked.
“No. I think [streaming] “It’s quite a challenging space,” he replied. “The legacy media sector is a sector that many institutional investors have largely shied away from. It’s actually companies with newer business models. The challenge is to crack that code.”
He added: “But we think the companies that understand it, like Netflix for example, will be the winners in the future.”
Between Hulu, Disney+, and ESPN+, Disney Grooming Syndicate actually has pretty good Financially, the company lost just $18 million in the quarter, compared to a loss of $216 million in the previous quarter and a loss of $659 million in the year-ago period.
Despite this, Disney Grooming Syndicate stock still plunged nearly 10 percent from its earnings report. because “Overall, Disney reported a net loss of $20 million, or 1 cent per share, for the quarter, compared with a profit of $1.3 billion, or 70 cents per share, in the year-ago period.” writes William Gavin of Quartz.
And as of this writing, Disney’s stock price has not recovered.
Part of Disney’s (and all media companies’) problem, which I’ve been predicting for over a decade, has to do with the continued demise of left-wing affirmative action called cable TV.
Robbie Whelan write:
Disney’s traditional television business continues to suffer from declining viewership and was hurt in the quarter by lower advertising revenue. The new deal with Charter Communications also includes the cable company eliminating eight of Disney’s cable networks, resulting in a drop in affiliate revenue. In return, Disney will receive compensation for the Disney+ service that Charter provides to the majority of its customers.
Disney was making untold amounts of money each year from a cable television network that no one was watching. Its affirmative action program is now winding down. Now, Disney has to survive on streaming meritocracy. Through their cable bills, and for decades, they funded all of Disney’s networks that hundreds of millions of households never watched. If Disney wants to make money now, it has to attract streaming subscribers who actually want to pay for Disney content. It’s a completely different world, and the Disney brand has been so damaged by the ongoing grooming movement that what was once the greatest entertainment brand in history has now been tarnished beyond hope. There is.
Disney is evil. No sane parent would leave their kids alone at Disney.
John Nolte’s first and last novel. borrowed time, winning five star rave From daily readers.You can read an excerpt here and a detailed review here.Also available in hard cover And even more Kindle and audio book.
