Disney CEO Warns Of Production Delays, Stock Falls

Walt Disney Co DIS is trading lower Tuesday afternoon after CEO Bob Chapek expressed some continuing COVID-19 Delta variant concerns while speaking at the Goldman Sachs 30th Annual Communacopia Conference.

According to reports, Chapek said the resurgence of the variant is creating production delays for the fourth quarter.

Chapek went on to discuss declining subscription video on-demand subscriber trends across some of its streaming services including Hotstar, an Indian on-demand service operated by Disney.

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Earlier Tuesday, Daiwa Capital analyst Jonathan Kees initiated coverage on Disney with a Buy rating and a price target of $225.

DIS Price Action: Disney has traded as high as $203.02 and as low as $117.23 over a 52-week period.

The stock is down 3.3% at $172.66 at time of publication.