Loop Capital added insult to Disney's injury Tuesday, downgrading the stock to hold from buy as the stock fell after a top executive left the company to become CEO of social app TikTok.
"The earlier a vaccine is available the sooner the parks, stadiums and theaters will open, but the economy will likely have a multi-year impact on park attendance and Covid-19 has accelerated the negative trends in the traditional media business," Gould wrote.
The departure of Kevin Mayer, who was in charge of the successful rollout of Disney+ and led Disney's purchases of Pixar, Marvel, Lucasfilms and Fox, will also hurt, according to Gould.
Gould also pointed out the liquidity problems Disney could have if the fallout from the coronavirus continues long-term.
Disney has a $14 billion cash pile, but it recently suspended its dividend, raised $17 billion of new debt and increased its credit line by $5 billion to $17.25 billion.
There one bright spot for Disney, according to Loop Capital, is Disney+.
The firm projects that Disney+ will grow to 161 million subscriptions by 2024 and will generate $14 billion of revenue and $3 billion of EBITDA.
Disney shares fell 1.5% to $115.15 Tuesday late morning.