Walt Disney Stock Dips: What's Going On?

The Walt Disney Company (NYSE:DIS) shares are dropping Thursday. The latest pressure on Disney appears tied to recently reported layoffs, which can signal ongoing cost-cutting and restructuring efforts. Walt Disney shares are sliding. What’s weighing on DIS shares? Disney Is Cutting Several Hundred Jobs in HR and Technology Reuters reported Tuesday, citing a person familiar with the matter, that Disney plans to cut a few hundred jobs spanning its human resources and technology teams. The news lands during a stretch of notable turnover in Disney’s executive ranks under CEO Josh D’Amaro, who took the role in March. These cuts aren’t isolated. Disney eliminated around 1,000 roles in April, several hundred more last year, and 7,000 positions in 2023 under then-CEO Bob Iger as part of a $5.5 billion cost-cutting push. The company’s global headcount stood near 231,000 heading into fiscal 2026. BofA Sees “Underlying Positive Trends” Ahead of November Earnings Disney is set to report its fiscal fourth-quarter results on November 12. BofA Securities analyst Jessica Reif Ehrlich maintained a Buy rating and $125 price target this week, expecting a solid quarter helped by theme park attendance strength and two new cruise ships, though she sees the Entertainment segment staying weak given soft box office showings from Moana and The Dog Stars. Looking ahead to fiscal 2027, Ehrlich described the year as having a “lot of moving parts,” with a lighter content slate creating a tougher setup in Entertainment, while Sports should benefit from the NFL Network deal and Super Bowl. She kept her revenue estimate at $105 billion and earnings at $7.52 per share, while raising her operating income projection to $20.8 billion from $20.7 billion. Disney carries an overall Buy rating, with an average price target of $126 across 24 analysts. Guggenheim maintained Buy with a $120 target on Sept. 28, Wells Fargo raised its target to $132 on Aug. 6 and Argus Research maintained Buy with a $134 target the same day. Disney’s Chart Shows a Stock Testing its Moving Averages Technically, Disney trades below its 20-day, 50-day, 100-day and 200-day averages, keeping recent rallies capped. Momentum remains soft, with MACD below its signal line. Still, the 20-day average sits above the 50-day, and the 50-day remains above the 200-day following a golden cross in September, a mixed setup overall. Traders are watching $109.50 as resistance and $98 as support. DIS Shares Are Falling DIS Price Action: Walt Disney shares were down 3.00% at $101.75 at the time of publication on Thursday, according to Benzinga Pro. Read Also: Tom Lee Says ‘Buckle Up’ for Stock Market Rally as S&P 500 Historical Setup Signals Strong Q4 Image: Shutterstock