Disney Plunges Further and Pulls Dow to Six Month Lows
Selloffs caught pace on Thursday as many stocks of the Dow indices took.
High performers of the index namely Walt Disney Co, Apple Inc and Tesla Motors Inc have weakened this week. Tesla stocks fell by 8.9% as investors strongly reacted to poor margins and uncertain results .
However, the biggest disappointment for the day was Disney whose stocks declined due to Disney’s revenue slow down and due to replacement of traditional cable service by “Cord Cutters”.
On an average, Dow Jones lost 0.7% to six month lows, s&p 500 lost 0.8% and NASDAQ lost 1.6% and Russell 2000 ended up losing 1.3%. On a whole, around 121 S&P 500 have lost more than 20%.
However, the question that still remains is that will Disney be affected with this meltdown and the answer for the same is that it is still too early to judge the media giant’s future.