Walt Disney (DIS) is under the spotlight after its ABC network suspended the “Jimmy Kimmel Live” for good following controversial comments made by the host regarding the alleged killing of conservative activist Charlie Kirk. The move has drawn attention from both critics and investors, raising questions about potential impacts on ABC’s viewership and Disney’s broader brand reputation. Meanwhile, DIS stock appeared unaffected by the news, opening up 0.34% in pre-market trading.
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Just before ABC’s announcement, Nexstar Media Group (NXST) said its ABC-affiliated stations would pre-empt Kimmel’s show “for the foreseeable future” due to the host’s comments. For context, ABC operates as a subsidiary of Disney, which controls its programming, operations, and business decisions. Meanwhile, Nexstar owns roughly 10% of the approximately 225 ABC affiliate stations.
Kimmel’s Comment That Shook ABC
“Jimmy Kimmel Live!” is ABC’s late-night show, hosted by comedian Jimmy Kimmel since 2003, featuring celebrity interviews, comedy, and political commentary.
In its latest episode, Kimmel said, “The MAGA Gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.” Notably, MAGA Gang is an informal phrase that refers to supporters of U.S. President Donald Trump and his Make America Great Again movement.
Following the suspension, calls to boycott Disney and ABC began trending on social media, with users expressing strong anger over Kimmel’s comments.
Trump Cheers ABC‘s Decision
Trump praised ABC’s decision, calling it “Great news for America.” In a post on Truth Social, he congratulated the network and described the Kimmel show as “ratings challenged.” Trump is known for often pressuring broadcasters to pull content he didn’t agree with.
Trump’s support for the suspension comes as he considered Kirk as part of his political family.
ABC Ratings and DIS Stock In Focus
The suspension of Jimmy Kimmel Live! could potentially impact both ABC’s ratings and Disney’s (DIS) stock, though the effects may vary. As a staple of ABC’s late-night lineup, pulling the show could cause a short-term drop in viewership, particularly among regular late-night audiences.
Additionally, trending calls to boycott Disney and ABC may put pressure on the company’s brand value in the near term. While Disney’s broader business is diversified across streaming, theme parks, and other media networks, controversies surrounding ABC could temporarily influence investor sentiment.
Is Disney a Good Stock to Buy Now?
On TipRanks, DIS stock has a Strong Buy consensus rating based on 19 Buys and three Holds assigned in the last three months. The average Disney stock price target of $137.0 implies an 18% upside from current levels.
