Disney (DIS, $102.26) to stop paychecks for 100,000 employees
Walt Disney will stop paying more than 100,000 employees, starting this week, in a bid to save more cash amid the coronavirus crisis.
The entertainment behemoth will continue to provide full healthcare benefits for staff on unpaid leave, according to the Financial Times.
The employees, whose paychecks are to be discontinued, will be asked to seek state benefits.
Earlier this month, Disney's SEC filing revealed that it entered into a new credit agreement with Citigroup for as much as $5 billion to help see itself through the lockdown. The facility is apparently for general corporate purposes, as indicated in the filing.
Disney had earlier announced plans to furlough certain non-essential U.S. employees starting April 19. The company asked them to apply for the additional $600 a week of federal support as part of the U.S. government's $2 trillion coronavirus stimulus package.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DIS in downward trend: price dove below 50-day moving average on September 18, 2026
DIS moved below its 50-day moving average on September 18, 2026 date and that indicates a change from an upward trend to a downward trend. In 28 of 34 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 82%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for DIS moved out of overbought territory on August 26, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In 15 of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at 62%.
The Momentum Indicator moved below the 0 level on September 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In 55 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for DIS turned negative on September 01, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 27 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 40 of 68 cases where DIS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
Following a +2.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in 153 of 264 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 53 of 165 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 32%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 44 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.611) is normal, around the industry mean (18.366). P/E Ratio (21.169) is within average values for comparable stocks, (96.295). Projected Growth (PEG Ratio) (3.348) is also within normal values, averaging (8.497). DIS has a moderately high Dividend Yield (0.015) as compared to the industry average of (0.005). P/S Ratio (1.925) is also within normal values, averaging (2.913).
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating fairly steady price growth. DIS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 77 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment
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