Disney Stock (NYSE:DIS)
In the late afternoon trading session on Wednesday, shares of Walt Disney (NYSE:DIS) fell somewhat due to comments made by Wells Fargo Investment Company. The company said it did not believe the company headed by Bob Iger would sell Hulu. As a result, Disney stock declined in the market.
An analyst named Steve Cahall penned the following statement in an investment note: “We believe market expectations for Disney stock selling Hulu have gone too far too soon.” “Certainly, it is an alternative; nevertheless, it would appear to destroy any future optionality if DIS cannot negotiate a fair price.”
Cahall continued, saying, “We believe investors who are banking on a Hulu divestment might end up disappointed.”
Cahall said that Comcast (NASDAQ:CMCSA), often considered a purchase since it owns 33% of Hulu, may concentrate only on its own Peacock streaming service.
The analyst clarified that most of Hulu’s content originates from Disney and that any agreement may lead to a content arrangement in addition to a company purchase.
Iger said he was “bullish” on “several” of the company’s streaming prospects last week. Still, he noted that Hulu was in a different situation than the others.
“What each of the many businesses involved in streaming has been claiming is that they will be tremendously lucrative over the next couple of years and expand their subscriber base by the tens of millions. It’s not even somewhat possible, “Iger said while speaking at a conference hosted by Morgan Stanley.
Iger also stated that not all streaming services will emerge victorious. Even though Hulu possesses “very strong original programming” and is appealing to advertisers, Disney is interested in gaining a better understanding of the potential trajectory of the industry as a whole, given that it is still in its infancy, except Netflix.
A report published by Citi earlier this month hypothesized that Walt Disney may suddenly be interested in unloading its holdings in Hulu.
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Author Shariq Khan 
