The Walt Disney Company’s (NYSE: DIS) stock suffered slightly as a result of a downgrade from Imperial Capital.
Disney shares are up 28.7% in 2019, with a gain of almost 32% in the past 12 months. The Company’s success could be attributed to recently premiering an exciting portion of its Avengers franchise and introducing new theme park attractions. As a result, the media giant’s earnings are quite substantial. However, on Monday, shares were down 0.4% to USD 141.04 during afternoon trading.
Disney recently became the majority owner of Hulu after acquiring Comcast’s (NASDAQ: CMCSA) stake in Hulu and has taken complete control over the streaming service. The Company plans on adding original content to Hulu as well as launching its upcoming streaming service, Disney+, in November of this year. Disney+ will offer movies and shows from Disney, Pixar, Marvel, Star Wars, and National Geographic. The service could provide a serious amount adversity for other streaming services, primarily Netflix (NASDAQ: NFLX). However, the Company has made it explicit that the service won’t be profitable right away.
On Monday, David Miller, Imperial Capital analyst, cut his rating on Disney as the stock approaches his USD 147 price target. He wrote that many factors that originally made him take the stance he did on the stock are no longer influential enough.
“It seems inevitable that Disney’s streaming services will ultimately replace its legacy networks, but that will take a very long time, perhaps upwards of a decade,” said Miller.