Defiance ETFs: Disney needs to clean house, Elon Musk needs to focus on growth at Tesla
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Defiance ETFs CEO Sylvia Jablonski laid out the steps that two of the biggest names on Wall Street need to take in order to regain investor confidence, saying that Disney (NYSE:DIS) needs to protect its margins and that Tesla (NASDAQ:TSLA) needs CEO Elon Musk to concentrate on growth at the EV maker now that the Twitter buyout saga has come to a close.
Speaking to CNBC, the CEO, CIO and co-founder of Defiance ETFs said the Disney's recent disappointing results came as the cost of drawing subscribers to its Disney+ streaming service is "a lot higher."
"Disney basically needs to clean house. They need to figure out how to cut costs and increase their margins, I think, before they get the confidence of investors back," she said.
DIS dropped nearly 12% in Wednesday's early action following the release of lower-than-expected quarterly results. Revenue rose 9% to about $20.2B, but this figure was about $1.3B below analysts' consensus.
For TSLA, Jablonski said she continued to be invested in "the roller coaster that is Tesla" but argued that the stock had been held back by "so much noise coming from all sides."
"I think with Tesla, what we really need to see is that Elon Musk continues to maintain ownership of the company, continues to focus on growth, is finished with these sort-of big sales to fund what might be the Twitter project," the Defiance ETFs CEO said.
Jablonski added that TSLA also "needs to see a clean up in the supply chain," with fewer COVID disruptions in China helping to "get them back on track."
"Tesla is the leader in the electric vehicle space. The direction of automobile buying is certainly going in that way and I think Tesla can maintain their leadership there," she said.
TSLA ticked up in Wednesday's early trading, with the stock coming off a 52-week low set earlier this week. 

For another optimistic view of the stock's prospects, see why Seeking Alpha contributor Valuentum thinks TSLA "looks cheap," although it is still fighting through the potential Twitter distraction. Taking the bearish side, fellow SA contributor Geoff Considine said TSLA is not a compelling buy, even at a 12-month low.