By Jennifer LeeVan
Disney’s stock (DIS) dropped by almost 3 dollars a share this past week, closing with a one-day 5.96 percent drop in value according to Christopher Palmeri of Bloomberg.com (Link Below).
Many argue that “weakening trends” at ESPN and lower ratings for the ABC network overall have contributed to this low. In addition, while broadcasting has changed little, many look to the decrease in Disney’s movie, broadcast television and interactive segments for an explanation for this drop in share price.
It has also been reported that Disney’s earnings from movies have dropped, but Wreck-it-Ralph still amassed $49 Million at the box office during its opening weekend and is in strong competition with the other block buster of November: Skyfall. In fact, moviegoers and Disney fanatics Kristen Laffey and Theresa Serrian agreed that, “Wreck-it-Ralph was the best-animated film of the year”.
In addition, few can visit any of Disney’s parks or resorts and suggest that there are dark times ahead for Disney. The consistent, long lines tell no lies.
However, only time will tell whether investors will stay confident in Disney.