Disney (DIS) Stock Falls as New 'Alice' Movie Flops
NEW YORK (TheStreet) -- Walt Disney Co. (DIS) - Get Report stock is declining by 1.29% to $99 in late-morning trading on Tuesday, as its sequel "Alice Through The Looking Glass" brought in just $34.2 million over the four-day weekend in the U.S. and Canada.
The movie was expected to gross $61.0 million, according to analysts at Box Office, MarketWatch reports. Its predecessor "Alice in Wonderland" opened to $116 million in March 2010.
The latest "Alice" installment cost Disney about $170 million to make, the Wall Street Journal adds.
Overseas, "Alice Through The Looking Glass" took in $65 million in 43 markets, leaving it significantly short of the $1 billion grossed globally by its predecessor.
Additionally, Disney told Bloomberg it will "take action to address infringement" after its characters appeared at a rival theme park belonging to China conglomerate Dalian Wanda Group this past weekend.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Disney's strengths such as its growth in earnings per share, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: DIS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
