Can Michael Jordan Save Disney Stock?
One of the most controversial stocks of the COVID-19 downturn is Disney (NYSE: DIS). No doubt, Disney is a timeless brand, with incredible diversity and vast reach across the entire entertainment industry.
However, that "diversity" means that large parts of Disney's business are now effectively shut down. That includes its most profitable division of parks, experiences, and products, and its third-most profitable studio entertainment division, which is mostly first-run film releases in movie theaters. While the company's high-growth direct-to-consumer division, including Disney+, has been growing like wildfire amid the stay-at-home economy, that division is still unprofitable, and likely won't make profits until 2024. These severe headwinds forced Disney to recently lay off 100,000 workers in its theme parks, and two analysts recently downgraded the stock, which is still down by one-third from its recent highs.
That leaves Disney's media networks division, which includes ESPN, to carry the company at least somewhat through this difficult time. But with no live sports and advertising spending depressed, that division is in for a rough ride as well.
Source Fool.com
