The article argues --on the basis of fundamentals-- that Disney’s stock price should recover. But then, why is DIS --AGAIN-- losing more money today than the broad market? Obviously, Zacks is ignoring the chief factor driving the sell-off, which is Disney’s Marxist politics and not its finances. (“Get woke. Go broke.”)
Today’s price of $114 and change is no better than what the stock was trading at 5 years ago. Meanwhile, Disney has had to eliminate their dividend. NOT A GOOD SIGN.
The article argues --on the basis of fundamentals-- that Disney’s stock price should recover. But then, why is DIS --AGAIN-- losing more money today than the broad market? Obviously, Zacks is ignoring the chief factor driving the sell-off, which is Disney’s Marxist politics and not its finances.
I’m not persuaded that Zack’s is ignoring anything. When there’s a change that might affect a company negatively, the market has a tendency to sell in a panic, causing the price to crash, then to reassess and buy back in. We’re still in the panic sale time frame, which usually lasts a week or two, creating a great opportunity to buy shares at the heavily discounted “panic” price point.
Panics don’t last a year. Pull a chart for DIS and look how far back it time it began to be sold down. It was way before the Florida brouhaha happened and even before the cultural clashes came to fore.
“Yes”, those have added impetus to the selling. But they weren’t the initial cause. The smart money began rotating out of the stock long ago.
I’m sorry, did Zachs provide a specific date for recovery? I am not aware that analysts work that way.
Who notes Disney suspended the dividend due to the closure of the theme parks and theaters in March of 2020, and the company is still on a recovery path and is not yet operating at 100% across all businesses…
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