Home > Latest News > Wall Street Downgrades Disney Stock As Streaming Slows

Wall Street Downgrades Disney Stock As Streaming Slows

Disney stock has received its first Wall Street downgrade in more than three years, as Barclays highlighted slowing growth at the Disney+ streaming service.

In the June quarter, Disney+ subscriber numbers beat Wall Street estimates, with the streaming service adding over 12 million subs, to reach 116 million worldwide.

Disney CEO Bob Chapek warned investors at a Goldman Sachs conference last month not to expect subscriber growth to “be a steady march from quarter to quarter”, pointing out that Disney+ growth had, indeed, slowed in the current September quarter, predicting figures in the “low single-digit millions.”

Disney stock fell 5 per cent after Chapek made the comments.

Chapek pointed out that other streaming services such as Netflix also experienced a slow-down in growth, and that Disney+ is planning to push into new markets in the new year, which will again bolster growth.

“While the company [Disney] appears to be targeting one new piece of content a week, not every piece of content has the same franchise value or visibility,” Barclays analyst Kannan Venkateshwar said.

Barclays says for Disney+ to reach its target of 230-260 million subs by the end of June 2024, it will need to more than double its subscriber growth from here on out.

Disney shares fell by 3 per cent after Barclays’ warning.

You may also like
Australian Streaming Video War Gets Hotter
China’s Censorship Reach Hits Disney+ And The Simpsons
Disney Earmark $46 Billion For New Programming In 2022
Michael Dell Kicking Goals In Premier League, Rights Set To Sell For $2bn In US
Netflix Stream Past Disney In Market Value