It seems that the magical run is over for The Walt Disney Company (DIS - Free Report) . The company’s stock has been an incredible investment over the past few years and was seen as everyone’s safe long-term investment. After reaching new highs earlier this month, DIS has fallen over 15%. During trading hours on Thursday alone the stock fell 6%.
Concerns about the company first arose after its latest earnings report. Despite solid bottom line performance, Disney lagged on the top line. The main issue is its most valuable segment, Media Networks, which includes Cable Network and Broadcasting. As more and more consumers “cut the cord” and move away from traditional cable subscriptions, Disney stands to lose a lot of revenue from its subsidiaries like ESPN and ABC.
With Thursday being a busy day for Disney investors, the social media world was buzzing about this stock. As always, we kept a close eye on StockTwits and Twitter, and we’ve compiled our favorite comments below. Overall, the sentiment was mixed, as almost everyone had their own opinion on the strength of this stock and what the company needs to do to turn things around.
$DIS I wonder if execs have thought of divesting the TV networks arm into a separately traded company?— Triggerfish (@Triggerfish) Aug. 20 at 02:36 PM
$DIS the one stock on wall street that hit its PT $120 if you didnt sell at $120 you deserve this -Kramers new book pigs get slaughter— Crab Claw (@KingTEA) Aug. 20 at 02:47 PM
$NFLX $DIS and $TWX down today on cord cutting worries and yet NFLX down more than them? What? Irrational markets have lost it.— Wireless Cowboy (@wireless_cowboy) Aug. 20 at 02:46 PM
Currently, Disney has a Zacks Rank #3 (Hold). The stock has had a very rough couple of weeks, with an especially poor day of trading Thursday. Investors should definitely keep an eye on what Disney does next, as a move to right the ship could be coming soon. Until then, however, it might be safer to avoid DIS.
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