Why We Downgraded Disney
New Constructs CEO David Trainer appeared on CNBC’s Closing Bell this afternoon to explain why we recently downgraded Disney’s (DIS) stock to our Neutral rating following the release of its annual report.
Watch below:
Disclosure: New Constructs staff receive no compensation to write about any specific stock, sector, or theme.
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"They can only recycle Star Wars and Avengers for so long?"
Star Wars has been around for about almost 40 years and is still going strong. And what about the new original movies Disney consistently produces. Look how great Frozen has done which was completely original. And the licensing is everywhere. In fact, Frozen dolls now outsell Barbie! I'm not saying Disney is perfect, but you have to give some credit where credit is due.
Mr. Kaplan,
We think Disney is a great company — a truly great one — that has tremendous brand assets and has delivered great value for shareholders for many years. We simply believe that all of these brand assets and future "home run" movies, including Frozen 2, are priced into the stock at its current level.
Thanks for reading and commenting.
Thanks for clarifying. That does makes sense.
Personally, I agree with Mr. Trainer. But I don't have the courage to say it so openly! I fear he's going to get a lot of hate mail for taking on one of the most beloved stocks of all time. The only way it good be worse is if he downgraded Apple.