NEW YORK (TheStreet) -- Walt Disney (DIS) hit a one-year high of $83.42 as of 1:26 p.m. on Thursday despite the report that Disney Interactive, the company's video game and Internet division, would cut more jobs than previously expected, according to The New York Times.
The unit laid off 26% of its workforce, or approximately 700 jobs, as a result of Disney's strategy change, particularly with regard to its advertising strategy for Disney.com.
"These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability," said Disney Interactive president James A. Pitaro, according to The New York Times.
The company decided to merge prospering mobile games, like those played on iPads and smartphones, and struggling social games, such as those played on websites like Facebook. Disney has also decided to pursue more outside licensing opportunities and new partnerships rather than in-house game development. Disney Interactive plans to slash annual game production by up to 50%.
TheStreet Ratings team rates DISNEY (WALT) CO as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."