Disney’s ESPN ‘Exposed’ in Fragmenting Media World

MarketWatch: Disney shared took a hit after analysts at Barclays downgraded the stock to underweight from equal weight. Analyst Kannan Venkateshwar wrote that while “Star Wars” will offer some tailwinds long term, “the likelihood of valuation compression combined with potential risk to earnings next year both on account of ESPN is likely to result in Disney underperforming the sector.” Venkateshwar thinks ESPN is most exposed in today’s fragmenting media environment.