Year to date shares are down some 6%.
Judging from a pair of low yield analysts notes issued on Monday before Disney's earnings release on Nov. 10, the stock stood to survive dead money in the near-term
Long-term streaming guidance could be at risk, said Barclays analyst Kannan Venkateshwar in a new piece of research to clients. The analyst downgraded his rating on Disney to Out-perform from Equal. He also cut the price target by 17% to $175.
Continued Venkateshwar: This year however, Disney growth has slowed significantly despite launching new franchise titles, Day and Date Movie Releases and Star Part of this slowdown could be a function of Growth Pull Forward into 2020 and Promo Roll Offs, but we believe it could be due to structural factors capping growth as we detail in the note. / Disney need to more than double its current growth rate to at least the same level as Netflix in order to get to its long term streaming sub resource guide. This may be tough to do. The analyst points to increased competition in Disney AAPL Amazon AMZN and Netflix NFLX on streaming front as one key risk for Apple Another consideration, Venkateshwar says, is Disney's ability to spend on content and marketing because of its internal streaming organization.
He predicted that the Disney subs would grow by low single-digit millions in the quarter. As a result of this work, we cut our FY 2024 DTC revenue by almost $1.6 billion. Disney seems to have built incredibly high brand awareness very quickly but it hasn't effectively penetrated the older households without children. So the company will need to add more off-brand general entertainment content and find ways to best leverage Hulu ownership over time, Nathanson said.
Brian Sozzi is an editor at Yahoo Finance and the anchor to large. Follow Sozzi on LinkedIn and Twitter.