Disney‘S (NYSE:DIS) The annual fan event failed to move the stock price, a situation that was exacerbated by a sharp price cut by one analyst. Neither of these things shook the shares much, but Disney still ended up in the red on Monday. The stock fell 0.3% on a day when the S&P500 The index traded unchanged.
A big step in terms of parks
At the D23 Expo, Disney’s hype revolved around the numerous expansions and additions to its network of theme parks.
The company will massively expand Walt Disney World in Florida. Among the new attractions will be a “land” – a park area – dedicated exclusively to the characters’ villains. The company has already started building the site. In the meantime, the Pixar subsidiary Cars The franchise will be the subject of two new attractions in a reimagined Frontierland, including a race track and a family-friendly ride.
As for the first Disneyland in California, the company plans to build new lands and attractions based on the Marvel Avengers superhero world. It is also working on an attraction in the world of Avatar Movies.
An analyst’s reaction
It’s safe to say that the D23 announcements did not impress Accountability Research analyst David Heasman. On Monday, Heasman downgraded his recommendation on Disney stock from his previous buy to hold. His current price target is $95 per share.
The reason for the move was not immediately clear. It came less than a week after Disney announced its third-quarter results. Despite some notable positive numbers – such as the profitability of the Disney+ streaming service and some compelling earnings – the stock price has not moved much.
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Eric Volkman holds positions in Walt Disney. The Motley Fool holds positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.
Why Walt Disney Stock Slipped on Monday was originally published by The Motley Fool
