Walt Disney shares fall the most in 41 weeks on Wednesday, company bundles three streaming services for a monthly cost of $12.99

Walt Disney Company (DIS) intends to bundle its three streaming services – Disney+, ESPN+ and ad-supported Hulu, for a monthly cost of $12.99.

According to Walt Disneys Chief Executive Bob Iger, the bundle will be available for US customers when Disney+ is launched on November 12th.

Walt Disney shares closed lower for the sixth time in the past thirteen trading sessions in New York on Wednesday. It has also been the steepest daily loss since October 24th 2018. The stock went down 4.94% ($7.01) to $134.86, after touching an intraday low at $132.29, or a price level not seen since June 3rd ($131.49).

Shares of Walt Disney Company have risen 22.99% so far in 2019 compared with a 15.04% gain for the benchmark index, S&P 500 (SPX).

In 2018, Walt Disney’s stock went up 1.99%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“Our play… is to have general entertainment, we’ll call it Hulu, more family-like entertainment which is Disney+ and sports,” Disneys Iger was quoted as saying by CNBC.

“And that bundle that we’re creating, that $12.99 bundle where you can buy all three, offers consumers tremendous volume, tremendous quality and tremendous variety – for a good price,” the CEO added.

Disney+ is expected to offer a vast catalog of Walt Disney content along with new programs with favorite characters from “Monsters Inc.” and “Toy Story” to “Star Wars” and Marvel.

Additionally, after the Fox acquisition has already been finalized, all episodes of “The Simpsons” along with “The Sound of Music,” “Malcolm in the Middle,” and “The Princess Bride” will be put on the service on day one.

At the same time, all Walt Disney movies, which came out during 2019, will be made available on Disney+ once their theatrical and home entertainment windows have closed. “Frozen II” will also be available exclusively on the streaming service by next years summer, Disney said.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Walt Disney’s stock price, have a median target of $155.00, with a high estimate of $174.00 and a low estimate of $130.00. The median estimate represents a 14.93% upside compared to the closing price of $134.86 on August 7th.

The same media also reported that at least 17 out of 25 surveyed investment analysts had rated Walt Disney’s stock as “Buy”, while 8 – as “Hold”.

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