It seems that Walt Disney is getting out of the mobile phone business. According to the company, its Walt Disney Internet Group will cease operations of its United States-based mobile virtual network phone service later this year. The unit will now focus its attention on exploring a new business model for its content and services, including a potential partnership with a major U.S. carrier.
With the broader market on the upswing today, it seems that we only have DIS's news to blame for the stock's nearly 1% decline on the session. This isn't surprising, however - the security has been a bit shaky lately, given that Walt Disney depends heavily on the consumer, and consumers are not quite as confident as they once were. Still, DIS shares continue to rally tentatively higher along support at their 10-day and 20-day moving averages, and are now challenging the 34.50-35.00 region once again.
Sentiment is a bit iffy on DIS. Options players are very complacent, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.60 ranks in the 53rd percentile of its annual range. However, analysts have room for improvement, as 7 of the 15 brokerage firms offering up an opinion rate DIS a hold. Upgrades in light of this refocusing could add a bit of lift to the shares over the near term.