Just In . . . Disney to cut 7,000 jobs (3% of workforce) . . . will the government cut next?

Okay well it’s doubtful the government will cut 3% of it jobs.
the rest of us who are still working will just have to pay more

Anyway Disney is cutting 3% of its workforce.

Disney stock jumped 5.7% on the announcement and currently sells for $118/share.
That gives it a P/E of 62.8

  • 4 times the historically sustainable average and
  • almost 6 times higher than most stocks can sustain during a bear market.

Look at the bright side, at least it has income now (it took losses in 2019 and 2020)

The company reports

  • $45 billion in debt on $100b in tangible assets
  • $3+ billion in annual earnings

You can judge for yourselves if Wall St is overly optimistic on Disney.

  • Consensus price forecast for Disney is 125.48 ----> analysts expect the stock price to double. (See 1 below)
  • Forward P/E for Disney is 27 —> analysts predict Disney’s net earning will increase 50% (See2 below)

Sounds reasonable right? Earnings will increase 50% and stock price will double.
How could that not happen in this economy?



Government … CUT jobs?

I strained my uvula laughing at that.

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