Is the House of Mouse a House of Pain?
Disney got yet another downgrade on Monday, May 4.
The downgrade came from analysts at MoffettNathanson.
"While Disney has the advantaged assets to win in this new world, we fear that the uncertainty of the present situation creates significant and unrivaled earnings risk for the foreseeable future. The economic impact of social distancing is obviously most severe for the two divisions (Theme Parks and Studio Entertainment) that have driven free cash flow in the recent term. In addition, the acceleration in cord-cutting, coupled with ESPN’s high fixed cost base, could further negatively impact Media Networks. On the brighter side, Hulu and Disney+ should be gaining strength from this crisis, but do not contribute free cash flow to offset the erosion elsewhere," analysts wrote in the downgrade.
Watch the full video above for Jim Cramer's full take.
Want to know what Cramer and his team at Action Alerts PLUS are thinking about the markets and the stocks they're watching? Sign up on Action Alerts PLUS for more.
Cramer and the team are weighing in on what members need to know about the coronavirus pandemic's impact on the market. Here's how you can recap his entire April show.
Watch More of the Latest Videos on TheStreet and Jim Cramer
- From the C-Suite: Crunch Fitness CEO: We Had an Emergency Plan, Why Didn’t the Government?
- NCAA Considers Proposal That Would Allow Student-Athletes to Get Paid for Endorsements, Etc
- Professional Athletes in Business: NBA Hall of Famer David Robinson Says Teamwork is Recipe for Success
- Ask Bob: I Was Furloughed. Under the CARES Act, Do I Still Need to Pay My 401(k) Loans?
- Jim Cramer's 5 Books to Read During the Coronavirus Pandemic