What's Going On With Walt Disney Stock Wednesday?
Portfolio Pulse from Nabaparna Bhattacharya
Walt Disney Company (NYSE:DIS) shares are trading lower on Wednesday following the departure of senior executive Lisa Valentino from Disney Advertising Sales. This comes amid Disney's ongoing 'upfront' negotiations with advertisers. Additionally, Pixar Animation Studios has started implementing layoffs, releasing approximately 175 staff members due to reduced production for Disney+. CEO Bob Iger has announced plans to cut marketing expenses for Disney+ and expects the parks business to grow nicely over the long term, though not at the double-digit growth rates seen in recent years.
May 29, 2024 | 4:01 pm
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Walt Disney shares are trading lower due to the departure of senior executive Lisa Valentino, ongoing layoffs at Pixar, and announced cuts in Disney+ marketing expenses. CEO Bob Iger expects steady but slower growth in the parks business.
The departure of a key executive during critical ad negotiations, combined with layoffs and reduced marketing expenses, creates uncertainty and negative sentiment around Disney's stock. While the parks business is expected to grow, the overall short-term outlook appears negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100