TLDR
- Disney stock fell 1.9% to $113.76 this week after ABC suspended Jimmy Kimmel’s show following controversial political remarks
- The company lost over $4 billion in market value since the suspension, with retail sentiment turning extremely bearish
- Users are canceling Disney+ and Hulu subscriptions, with Google searches for cancellations rising sharply
- Streaming business recently turned profitable while traditional TV division faces continued subscriber declines
- Analysts maintain positive outlook with $5.85 EPS guidance despite the controversy
Disney shares took a hit this week as the entertainment giant found itself caught in political crossfire. The stock closed at $113.76, down 1.9% from its weekly high of $115.96.
The drama started when ABC suspended Jimmy Kimmel’s late-night show. Kimmel had made controversial remarks about activist Charlie Kirk’s murder and mocked President Trump’s reaction. The comments triggered swift backlash from multiple quarters.
Disney has lost nearly $4 billion in market value since suspending Jimmy Kimmel. pic.twitter.com/SiSMCIns5j
— No Lie with Brian Tyler Cohen (@NoLieWithBTC) September 20, 2025
Trading volume spiked to nearly 8.9 million shares during Friday’s session. The stock has been struggling to break through resistance levels around $117-$118 all month. Disney’s market cap now sits at $204.5 billion.
The suspension drew criticism from Disney’s partner networks Nexstar and Sinclair. FCC chair Brendan Carr also issued a warning to the company. However, Republican senators Rand Paul and Ted Cruz called Carr’s threats inappropriate and dangerous.
Y Combinator cofounder Paul Graham canceled his family’s Disney+ subscription in protest. He called Disney “spineless” for bending to political pressure from both sides. Graham’s move sparked a broader cancellation wave on social media.
Google searches for “cancel Disney Plus” and “cancel Hulu” have surged since the controversy began. Both critics and supporters of Kimmel are canceling their streaming subscriptions. The reaction shows how quickly political controversies can hit Disney’s bottom line.
Streaming Profits vs Broadcasting Troubles
Disney’s streaming business recently turned profitable, marking a major milestone. ESPN partnerships and digital transformation efforts have driven growth in the segment. The direct-to-consumer unit now generates positive cash flow.
Traditional television operations tell a different story. Linear TV subscriber declines continue plaguing the broadcast division. Disney+ pricing concerns also worry some investors about future growth.
The latest quarterly results showed this mixed performance across segments. While streaming profits improved, entertainment division challenges persisted. Management faces the tricky task of balancing old and new media operations.
Market Reaction and Analyst Views
Retail traders turned extremely bearish on Disney stock after the Kimmel news broke. Stocktwits data shows sentiment has remained negative since Thursday. One user posted “$DIS easy short” as selling pressure mounted.
Celebrity Mark Ruffalo publicly criticized ABC’s decision on social media. His comments suggested the suspension could further damage Disney’s stock performance. Media personalities like David Letterman and Ben Stiller voiced support for Kimmel.
Wall Street analysts maintain a more measured view. No major research firms have issued sell ratings on Disney shares. The analyst community still sees long-term value in the company’s diverse portfolio.
Disney executives and Kimmel plan to meet this week to discuss his future. The outcome of these talks could determine whether the controversy continues affecting share price. Theme park investments have started generating improved returns according to recent data.
Management reaffirmed full-year earnings guidance of $5.85 per share. This target assumes double-digit gains in entertainment and sports segments. Free cash flow remains strong despite moderate debt levels across the business.
The current dividend yield stands near 0.88% for income-focused investors. Disney’s balance sheet provides flexibility for strategic investments and shareholder returns. ESPN’s digital pivot represents a major strategic shift for the sports unit.
Disney shares are up just over 2% year-to-date, underperforming major indexes. The company has lost over $4 billion in market value since Kimmel’s suspension began. The November earnings report will provide updated guidance on streaming trends and theme park metrics.
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