Disney stock drops $3.8 billion amid backlash over Jimmy Kimmel suspension

The Walt Disney Company has seen its stock decline in recent days following the indefinite suspension of Jimmy Kimmel Live! on ABC, with online boycott calls and intense political pressure creating a volatile market environment.

While social media reports have claimed a loss of up to USD 3.8 billion, financial analysts and market data suggest the actual impact is more nuanced.

Reports from sources like Reuters and The Guardian confirm that Disney's stock (DIS) has experienced a downturn since the suspension was announced. The stock fell by approximately 1.9 percent over the week, closing at USD 113.76, down from a weekly high of USD 115.96.

The decline is attributed to a mix of market turbulence and the controversy surrounding Kimmel's remarks about the assassination of conservative activist Charlie Kirk.

The claim of a multi-billion dollar loss has been widely circulated but is not an official figure. Financial analysts and market experts have pointed out that while the stock did drop, such fluctuations are not uncommon. A report from CoinCentral noted that the stock's performance reflects a "bumpy ride" but that no Wall Street analysts have issued "sell" ratings, maintaining a generally positive outlook on the company's long-term prospects.

The controversy has also triggered a social media-driven boycott against Disney. Actors such as Mark Ruffalo and Tatiana Maslany, along with other celebrities, have publicly criticized the company's decision and urged fans to cancel their subscriptions to Disney+, Hulu, and ESPN.

In a post on Threads, Mark Ruffalo warned, "It's going to go down a lot further if they cancel his show. Disney does not want to be the ones that broke America." This online pressure, along with the decision by major broadcast owners like Nexstar to pre-empt the show, has placed Disney in a complex position.

Disney has not officially commented on the financial impact, but internal sources reported in some outlets suggest the company is in talks with Kimmel and his representatives to find a resolution. The situation highlights the high stakes for media companies navigating the intersection of political polarization, public backlash, and financial markets.