DIS
Another round of pink slips
Disney is back in restructuring mode, with reports saying the company plans to cut several hundred roles across human resources and technology. That’s not exactly the kind of headline that gets investors doing cartwheels, but it does fit Disney’s ongoing makeover: smaller org chart, tighter costs, and fewer layers of corporate spaghetti.
Wall Street says: okay, but show me the earnings
The stock was basically flat Friday morning after sliding Thursday, which is a pretty classic “we’ve seen this movie before” reaction. What’s keeping the bulls from bolting? BofA Securities still has a Buy rating on Disney and a $125 price target, pointing to sturdy theme park demand and new cruise ship launches as offsets to weaker theatrical box office results.
The big hinge: November 12
All eyes are now on Disney’s fiscal fourth-quarter report on November 12. Analysts are looking for proof that the cost cuts are doing real work and that the parks/cruise machine can keep humming while Entertainment deals with some softness.
Big picture
Disney is trying to be a leaner, meaner media machine — and investors are basically asking the same question every time: are these layoffs a sign of discipline, or a sign the empire needs more duct tape? The answer probably shows up in the next earnings print.