Walt Disney Co (NYSE: DIS)
Walt Disney was having a relatively normal trading session today. Unfortunately, the stock has been in the red all day. However, the declines were incredibly minimal and nothing that would concern the average investor. That is, until minutes ago when the stock started diving. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching with regard to DIS ahead.
What We’re Seeing From DIS
As mentioned above, Walt Disney was off to a relatively normal start to the trading session today. While the stock was in the red all morning, the declines were incredibly small. However, minutes ago, things went from slightly red to noticeably red in no time flat. At the moment (2:40), DIS is trading at $97.15 per share after a loss of $1.09 per share (1.11%) thus far today.
Why The Stock Is Taking A Dive
As usual, as soon as we noticed that DIS was falling, the CNA Finance team started digging to see if we could find a reason for the drop. It didn’t take long to dig up the dirt this time. Unfortunately, this is yet another ESPN related fall.
At the moment, there are reports that Amazon.com (NASDAQ: AMZN) is considering adding premium video services to Prime. The idea here is that the premium tier video services will offer more sports content. The problem for Walt Disney is the fact that more and more consumers are finding alternatives to ESPN to watch their sports content. So, with another big competitor likely coming on the field, DIS is taking a hit.
What We’ll Be Watching Moving Forward
Moving forward, we’ll be keeping a close eye on what AMZN does here. After all, if they do indeed start offering premium video services with sports events, it’s likely to be yet another hit to ESPN and, therefore, a hit to DIS. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]