Disney, Paramount, Sirius, Warner Brothers: Stock Prices In Decline

The stocks of the older, well-known names of the entertainment world are much lower in price today than they were at the beginning of the year. What’s odd is to compare their performance with the Standard & Poor’s 500 and the Dow Jones Industrials, both of which are hitting new highs today.

Disney, Paramount, Sirius/XM and Warner Brothers Discovery are unable to keep up with the rest of the stock market. This group falls into the category of “consumer discretionary,” that is, unlike the purchase of food or making the mortgage payment, consumers can skip the goods provided here if paychecks don’t cover it.

Disney, Paramount, Sirius, Warner Brothers: The Price Charts

The daily price chart for Disney looks like this:

From the late March peak of $122 to the current price of $92 is a drop of 24% over 6 months. The price low for this Dow and S&P component came in mid-August down there at $84 and it’s bounced since then. I’ve red-circled the spot where the 50-day moving average crossed below the 200-day moving average, a bearish trend look.

Here’s the daily price chart for Paramount:

The stock traded at $15.25 in later January and then made it down to $9.50 by mid-June. From the top to the low, that’s slippage of 37% and it’s not even October yet. Note that the 50-day moving average attempted to cross above the 200-day moving average in February but failed and it’s been basically downward since then.

The Sirius/XM daily price chart is here:

The red circle denotes the level at which the 50-day moving average crossed below the 200-day moving average, a signal of trend issues. The red dotted line at just above $24 marks the June low and you can see how the stock this week has dropped below that previous support area.

The daily price chart for Warner Brothers Discovery looks like this:

The stock is bouncing off of the August lows and has reached the level of the down trending 200-day moving average. The 50-day moving average is beginning to trend upward again. Warner Brothers Discover still has a long way to go to reach the January high of $11+.

Here’s the daily price chart for another entertainment sector stock, Live Nation:

The stock is outperforming those in the same sector mentioned above but can’t regain the level of the mid-March highs. The 50-day moving average in mid-August looked as if it might fall below the 200-day moving average, but then headed back up. Today’s price is just under the May high where the red dotted line appears on the chart.

Charts courtesy of Stockcharts.com.

No artificial intelligence was used in the writing of this piece.

More analysis and commentary at johnnavin.substack.com.