Walt Disney Co (NYSE:DIS) stock is down 6.7% month over month as of August 29. The company released its third quarter results on August 8 and reported a decline in revenue. ESPN has bled subscribers for some time which has weighed on earnings. Disney also announced that it was breaking from Netflix and would offer its own streaming service with original Disney material. There will be a streaming service for sports and for television and films. The announcement comes on the heels of a concern in Hollywood regarding the rise of Netflix Inc. and other streaming providers with original content. Disney is making it clear that it intends to go its own way in order to appeal to a younger tech savvy audience.
Earnings sent the stock south on concerns over the decline in traditional mediums within Disney like ESPN. However, help may be on the way in the holiday season. The eighth installment of the Star Wars franchise is set to be released on December 15. The previous film raked in over $2 billion at the box office and at the end of its run stood as the third largest grossing film in history. This next installment promises to bring an equal amount of interest, and Disney’s studio entertainment division could see an incredible boost.
Disney’s slump may provide investors with an attractive opportunity to pick it up at a discount before the holiday season promises a much-needed booster shot to earnings.
Related Stories
