TLDR
- Disney stock fell 1.9% to $113.76 this week following ABC’s suspension of Jimmy Kimmel Live after controversial political comments
- Company lost over $4 billion in market value as retail sentiment turned extremely bearish on Stocktwits
- Disney+ and Hulu cancellation searches spiked as users protested the suspension decision across social media
- Streaming division recently turned profitable while traditional TV operations continue facing subscriber declines
- Wall Street analysts maintain positive outlook with $5.85 EPS guidance despite ongoing controversy
Disney shares dropped to $113.76 this week, declining 1.9% from the weekly high of $115.96. The entertainment giant faced market pressure after ABC suspended Jimmy Kimmel’s late-night show following controversial political remarks.
Trading volume surged to 8.9 million shares during Friday’s session. The stock moved within a tight range of $111.93 to $114.22 over recent trading days.
Kimmel’s comments about activist Charlie Kirk’s murder and President Trump sparked immediate backlash. Disney’s partner networks Nexstar and Sinclair criticized the remarks, while FCC chair Brendan Carr issued warnings to the company.
Republican senators Rand Paul and Ted Cruz called Carr’s threats inappropriate. However, the political controversy continued impacting Disney’s stock performance throughout the week.
Subscription Cancellations Mount
Y Combinator cofounder Paul Graham announced his family canceled their Disney+ subscription in protest. He criticized Disney as “spineless” for bending to political pressure from multiple directions.
Graham’s cancellation sparked a broader movement on social media. Google searches for “cancel Disney Plus” and “cancel Hulu” rose sharply following the suspension announcement.
Both Kimmel supporters and critics are canceling streaming subscriptions. The reaction demonstrates how quickly political controversies can affect Disney’s subscriber base and revenue streams.
Business Insider reported widespread cancellation activity across Disney’s streaming platforms. The trend shows potential financial impact beyond immediate stock price movements.
Mixed Financial Performance
Disney’s streaming business recently achieved profitability, marking a key milestone for the division. ESPN partnerships and digital transformation efforts have driven growth in direct-to-consumer services.
Traditional television operations face different challenges. Linear TV subscriber declines continue affecting the broadcast division, while Disney+ pricing concerns worry some investors about future growth prospects.
The latest quarterly results reflected this mixed performance across business segments. Management must balance legacy media operations with streaming service expansion strategies.
Retail traders turned extremely bearish on Disney stock after the Kimmel news broke. Stocktwits data shows sentiment remained negative since Thursday, with users posting bearish predictions.
Wall Street analysts maintain more measured views on Disney’s prospects. No major research firms issued sell ratings despite the current controversy affecting share prices.
Management reaffirmed full-year earnings guidance of $5.85 per share. This target assumes double-digit gains in entertainment and sports segments throughout the remaining quarters.
Disney executives and Kimmel plan meetings this week to discuss his future with the network. The outcome could determine whether the controversy continues affecting stock performance going forward.
