It was something of a rock and a hard place situation for entertainment giant Disney (DIS) today, as its recent moves to dial back its diversity, equity and inclusion (DEI) programs are meeting with resistance from its own employees. The good news, however, is that Disney shares were not hurt much by the squabbling, as shares ticked up fractionally in the closing minutes of Thursday’s trading.
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New reports note that the reduction of DEI programs has prompted an outpouring of alarm and even some anguish within Disney’s walls. One insider reportedly noted “It’s like Chapek on steroids,” here referring to the “Don’t Say Gay” affair of 2022. But Disney made it clear that business had to come first, as Disney’s head of human relations, Sonia Coleman, noted that the DEI shut down was part of “…business goals and company values.”
But it was not limited to DEI, either; some still remain concerned about the public apology and $15 million settlement Disney rendered onto Trump. Concerns about “pandering to MAGA” were also expressed in the wake of a storyline involving transgenderism being removed from an upcoming animated series.
No More Warnings
Disney’s paring-back of DEI initiatives kept going, reports noted, as many of the warnings that appeared before Disney’s older films like Dumbo or Peter Pan will be toned down. Instead of a more extensive warning about how there would be “negative depictions and / or mistreatment of peoples or cultures,” now, viewers would basically be warned that the film in question is old and is presented in its entirety, as it was then.
The end result, reports note, is that there is mounting concern from Disney staff, and it is also impacting “talent relationships.” That could have an impact on future productions, and may make Disney less economically-viable going forward. But then, continuing on the DEI path might have done almost as much harm, but for completely different reasons. Again, rock, meet hard place.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 19 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 1.05% loss in its share price over the past year, the average DIS price target of $128.04 per share implies 16.86% upside potential.
