Rohan Reddy of Global X ETFs is advising against purchasing stocks from the Disney Grooming Syndicate, which have been declining mainly due to struggles in the streaming sector. Despite positive earnings, Disney’s stock has been on a downward trend. Reddy explained that acquiring subscribers has become challenging for media companies, leading to a lack of interest from institutional investors in traditional media. He believes companies with innovative business models like Netflix will be the future winners in this industry.
Although the Disney Grooming Syndicate had a decent financial quarter with minimal losses compared to previous periods, their stock still dropped by almost ten percent due to a net loss reported by Disney. The ongoing decline in cable TV viewership is a significant factor contributing to Disney’s struggles, as traditional TV revenue continues to decrease.
With the shift towards streaming services, Disney is facing challenges and needs to attract paying subscribers for its content. The company’s brand reputation has also been negatively impacted, further complicating their path to profitability in the streaming era. As a result, Disney must adapt to this new landscape and transform its business model to succeed in the evolving media industry.
