Walt Disney Co DIS shares are trading lower by 4.3% to $86.56 over the trailing five sessions. Shares of several media stocks have experienced weakness and are trading lower in recent sessions amid the SAG-AFTRA union strike. Additionally, Disney may be falling amid commentary from streaming peer Netflix.
Netflix said it expects lower cash content spend in 2023 due to timing of production starts and the ongoing WGA and SAG-AFTRA strikes.
Why It Matters
Strikes often come with increased production costs as alternative arrangements or temporary workers may need to be hired to keep productions running. These additional expenses can strain Disney's financials, potentially impacting its profitability and cash flow.
A strike would disrupt the production of films, TV shows and other content owned by Disney. This disruption can result in delays in releasing new content, impacting the company's ability to generate revenue and meet audience demands. Investors may perceive this as a negative sign, potentially leading to a decline in the stock price.
See Also: Social Media and 'Buy Now, Pay Later' Trends Influence Amazon's Record-Breaking Prime Day
According to data from Benzinga Pro, Disney has a 52-week high of $126.48 and a 52-week low of $84.07.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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