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Disney stock falls drastically after downgrade from COVID-19 pandemic

Disney stock falls drastically after downgrade from COVID-19 pandemic

No doubt, Disney has always trailed through the ups and downs of the stock market. But, looks like Disney has fallen drastically after being affected by the ongoing pandemic. Lightshed Partners Analyst, Richard Greenfield predicted that Disney’s stocks have downgraded worst. He argued that there is very little future earnings visibility for Disney as even after the prolonged pandemic ends, Disney themed parks will not get a large number of visitors.

The Walt Disney parks

Greenfield wrote in a report Disney’s earnings will be impaired until the ongoing health conditions improve. He even told that Disney’s stock is highly overrated. And it should be downgraded to sell at $85. However, the company will release its financial report on Tuesday, after the markets close. The analyst also quoted that Disney is now out of league from being on top of the world a la Lion King. And, the company is trailing like an Eeyore who is stuck in the middle of a perfect storm.

Recently, Disney announced its next CEO, Bob Chapek. But, Bob Iyer, the previous CEO has turned into the new management role during the pandemic. Greenfield also warned that reopening the Disney parks too early won’t even help them to survive. Because they would get a low attendance of visitors even if they enroll their furloughed workers at high costs.

Disney parks closed due to COVID-19 pandemic

The other analysts from The Lightshed Partners have predicted that it would take more than two years for Disney parks to return to normal attendance. Greenfield also forecasted that Disney’s stock would fall in 2021 before it reaches a new normal in 2022. And if these estimates are even close to realistic, then Disney’s stocks won’t survive at current levels. Let’s hope for the best and pray that economy restores normalcy after the global pandemic ends.

 

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Written by Kashish Verma

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