.August 8, 2024 07:21:36 AM

Walt Disney Co. (NYSE:DIS) has reached a milestone with its streaming service becoming profitable, a significant achievement for the company. However, a recent report from 24/7 Wall St. Insights has labeled Disney as “still an awful stock,” indicating challenges in reshaping investor perceptions.

Seaport Global downgraded Disney’s stock to Neutral from Buy, reflecting growing skepticism about the company’s short-term financial prospects. This adjustment comes amidst concerns about Disney’s financial performance metrics, impacting market sentiment.

Disney’s financial performance shows a decline in revenue growth by 6.23% and net income growth by 101.05%. Despite this, there has been a substantial increase in free cash flow growth by 171.67%, highlighting positive developments in cash flow metrics.

While Disney faces challenges with declining key financial metrics, the increase in free cash flow growth and operating cash flow growth provide a glimmer of hope for the company’s financial health. The complex financial landscape underscores the need for investors to carefully assess Disney’s long-term prospects.