In a significant shakeup in the tech and entertainment industries, Disney has reportedly cut ties with Salesforce’s Slack following a major hacking incident. The breach led to the leakage of sensitive data, raising concerns about the security of collaboration platforms.
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Market Reaction to the News:
The news of Disney’s decision to abandon Slack has sent ripples through the market. Salesforce, the parent company of Slack, saw a dip in its stock as investors responded to the potential loss of a high-profile client like Disney. Disney, on the other hand, has been taking strides to reassure stakeholders about the security measures it is putting in place. Though Disney’s stock price recently showed a slight uptick due to broader positive market momentum, this incident adds to the company’s ongoing challenges in securing its digital infrastructure.
Stock Target Advisor’s Analysis on Walt Disney Company:
According to Stock Target Advisor, the outlook for Walt Disney Company is currently classified as Very Bearish. The analysis points to a range of concerning factors, including poor risk-adjusted returns and below-median total and dividend returns when compared to its industry peers. Despite a 12.96% capital gain over the past year and slight recent gains in its stock price, Disney has shown low earnings growth over the past five years.
The stock is currently trading at $93.45, with analysts projecting a 12-month target price of $126.54, representing a 34.63% potential upside, though skepticism remains high due to Disney’s performance issues.
Conclusion:
Disney’s decision to abandon Salesforce’s Slack in the wake of a significant hacking incident reflects a growing trend among major corporations to re-evaluate their reliance on third-party platforms for secure communications. As cybersecurity becomes a key concern in the digital era, Disney’s move could inspire similar decisions across industries, emphasizing the need for secure and resilient communication systems.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
