Walt Disney (DIS.US) stock slipped more than 3.0% after Barclays (BARC.UK) downgraded the media giant's stock to "equal weight" from "overweight" and lowered price target by $35 to $175 per share. Bank is concerned about a significant slowdown in growth for the Disney+ streaming service. “Disney+ growth has slowed significantly," Barclays analyst Kannan Venkateshwar said. "In order to get to its long term streaming sub guide, Disney needs to more than double its current pace of growth to at least the same level as Netflix", adding that "long term streaming guidance could be at risk".
Disney reported that as of July it had 116 million subscribers for Disney+ and its international arm, Hotstar, with more than 57 million combined subscribers for Hulu and ESPN+. Although it added a lot of new subscribers in lower-cost markets such as India, it mainly experienced growth in the US. Media revenues increased 19% to $12.7 billion, while Theme Parks revenues more than tripled to $4.34 billion. Disney will publish quarterly figures on November 10, while updating investors on the growth rate of its Disney+ streaming service.
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Walt Disney (DIS.US) stock has been trading in a local sideways move recently. During today's session price approached the lower limit of the consolidation around $170.00 which coincides with 38.2% Fibonacci retracement of the upward wave launched at the end of October 2020 and lower limit of the triangle formation. Should break lower occur, downward move may accelerate towards support at $150.00 which is strengthened by 61.8 Fibonacci retracement. Source: xStation5
