Disney shares are down more than 2 percent after analysts warned the company needs to do more after the coronavirus
Disney Shares fell more than 2 percent on Monday after a Wall Street analyst warned that the company had a lot of work to do before it recovered from the pandemic and its economic fallout.
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Daniel Salmon, an analyst at BMO, who downgraded Disney shares from “superior” to “market performance”, said the streaming giant Netflix was its “best pick” in space, despite a long presentation of investors from Disney on Friday that It touts its rival Disney + streaming service, which goosed the company’s stock last week.
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In a report titled “Now the Hard Part Starts,” Salmon said Monday that he has decided to “move to the sidelines” even as Disney +, which has gathered more than 80 million subscribers since last fall, has launched an enhanced list of shows over the next few years, including 10 new series from the “Star Wars” series.
He wrote: “We believe improved vaccination rates can help Disney continue to play a strong“ re-opening ”role.“ Disney + sub-expectations certainly exceeded the most optimistic expectations, and were supported by an incredible amount of new content. ”
However, the analyst pointed to uncertainties linked to the epidemic that wiped out the company’s theme park and cinema business. Salmon added that despite the launch of the COVID-19 vaccine, he preferred media stocks such as Netflix, Google and Amazon.
Part of Salmon’s logic was the lack of detail about how the company had grown its ESPN live-streaming brand, ESPN +, as live sports had been wiped out due to the pandemic. He also added that Disney had not provided an update on “major movies moving to Disney + for theatrical performances.”
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Unlike its rival, Warner Bros. , Which was recently done I decided to release the 2021 movie list on HBO Max A month after it premiered in theaters, Disney took a more traditional approach. The company has three major films due to be shown in cinemas next year, including “Black Widow” (May 7), which has been delayed by a year due to the new Corona virus.
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