wall street firms issued bearish calls on club holdings walt disney dis and estee lauder el late this week heres a look at the headlines along with our take too walt disney dis ytd mountain disneys stock performance yeartodate the news wolfe research downgraded club holding disney friday to peer perform or neutral from outperform while removing its 133 price target on disney shares wolfe does not keep price targets on stocks it rates peer perform analysts at the firm were discouraged by the deteriorating outlooks for disneys directtoconsumer dtc subscriber base and linear tv growth following the entertainment giants mixed fiscal secondquarter results earlier this week during the quarter losses at disney the companys flagship streaming service improved but it still lost subscribers for the second straight quarter the analysts also noted that weakness in the advertising market may continue into the back half of the fiscal year still the analysts predicted disney can deliver higher profits in the mediumtolong term and remain a premium content and brand factory the clubs take following disneys latest earnings print we understand subscriber losses weighed on disney stock which has fallen almost 10 since wednesday however we think wolfes concerns are already priced into the current share price during disneys fiscal second quarter we were pleased to see the average revenue per user arpu rise and dtc operating losses narrow we are not ignoring the fact that disney lost some subscribers in domestic markets this is part of a natural tradeoff effect when any company pushes through price increases on its goods or services higher prices will lead to better levels of profitability over time and thats why were willing to let some softer subscriber data slide over the next few quarters we were also encouraged by the robust performance at disneys parks business  which generated profitable growth for the quarter we are staying patient with disneys turnaround under ceo bob iger and believe he can right the ship including by cutting billions of dollars in costs and better monetizing content estee lauder el ytd mountain estee lauders stock performance yeartodate the news argus downgraded its rating on prestige beauty brand estee lauder thursday to hold from buy following the companys weak fiscal 2023 thirdquarter earnings print on may 3 analysts at argus cited concerns over of the slow pace of recovery in china and in the travel retail segment in asia they now estimate fiscal year 2023 earningspershare eps to come in at 380 down from a prior estimate of 6 a share the analysts also reduced their fiscal 2024 eps estimate to 6 from 720 a share estee lauder management said last week that international flights in china and korea were subdued and group tours were slower to start estee lauder shares plunged 17 on earnings day and the stock has been in the markets penalty box ever since argus said that if theres a faster than expected rebound in china travel retail it would consider upgrading the stock back to a buy the clubs take given that chinas economic recovery is still unfolding we werent expecting an outperforming quarter from estee lauder however we were disappointed by the results following the weak quarter and the time it takes for inventory levels to normalize estee lauders next report wont be strong either at the same time management said its starting to see traffic recover in hainan province often referred to as the hawaii of china and with estee lauders business excluding travel retail in asia growing 10 in the quarter our conclusion is that the company is not facing a fundamental structural problem its a temporary issue that will resolve as chinas economy continues to reopen after three years of strict covid19 regulations we remain optimistic that broader consumer spending in china will reaccelerate to prepandemic levels jim cramers charitable trust is long dis el see here for a full list of the stocks as a subscriber to the cnbc investing club with jim cramer you will receive a trade alert before jim makes a trade jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trusts portfolio if jim has talked about a stock on cnbc tv he waits 72 hours after issuing the trade alert before executing the trade the above investing club information is subject to our terms and conditions and privacy policy  together with our disclaimer  no fiduciary obligation or duty exists or is created by virtue of your receipt of any information provided in connection with the investing club no specific outcome or profit is guaranteed