As Trump Renews Calls for Jimmy Kimmel's Removal, What's Next for Disney Stock?

Disney (DIS) shares inched lower on April 28 as escalating political friction weighed on sentiment. On Tuesday, President Donald Trump renewed his demand for ABC to fire Jimmy Kimmel following a controversial monologue. 

DIS was briefly seen trading below its 20-day and 50-day moving averages (MAs) this morning, indicating the bears are attempting to take back control across multiple timeframes. 

Despite today’s decline, Disney stock remains up about 10% versus its recent low. 

Does It Warrant Selling Disney Stock?

DIS shares pulled back mostly because political flare-ups around ABC talent create headline risk.

Trump’s campaign to have Jimmy Kimmel fired drags Disney into a high-visibility political dispute, raising fears of advertiser pullback, viewer polarization, and renewed scrutiny of its media assets.

It revives concerns about the firm’s long-running political entanglements, which have previously weighed on valuation multiples.

While the financial impact is limited, the market tends to discount stocks facing reputational volatility, especially when it involves a flagship network like ABC.

Note that Disney has historically closed May in the red, a seasonal pattern that makes the mass media giant even less attractive to own in the near term. 

DIS Shares Face Regulatory Headwinds as Well

Adding to the bearish sentiment, the FCC announced an unexpected review of Disney’s broadcast licenses on Tuesday, years ahead of schedule. 

This early scrutiny is significantly bearish for Disney shares since it injects regulatory uncertainty into a business that’s already under political and advertiser pressure. 

Broadcast licenses are typically renewed on a predictable cycle. However, an accelerated review in DIS’s case signals a probe into its content standards, ownership structure, or public-interest obligation, raising the risk of tighter oversight, legal costs, or even conditional renewals. 

For investors, it revives the broader concern that Disney’s media assets remain exposed to political flashpoints and regulatory intervention — a combination that historically weighs on sentiment. 

How Wall Street Recommends Playing Disney

Despite the aforementioned political and regulatory risks, Wall Street remains constructive as ever on DIS stock. 

The consensus rating on Disney sits at a “Strong Buy,” with the mean price objective of roughly $131, indicating potential upside of nearly 30% from here.