Hudgens Faces Disney Decision

Vanessa Hudgens did a naughty thing, but how will it affect DIS stock?

Although the 18-year-old is mainly known as a young actress on the Disney Channel’s "High School Musical," Hudgens is also a live performer – as a solo act and as part of the touring "High School Musical: The Concert." Mainly, though, she is an ambassador of the Disney brand – which means being squeaky clean.

Photos of an unclothed Hudgens recently appeared on the Internet. Could such exposure (sorry, it was too easy) affect Disney’s plans for including Hudgens in future touring projects?

The HSM tour is a lucrative venture. For instance, Atlanta’s Fox Theatre held 23 "Concert" performances in a row in January, grossing nearly $4.4 million.

"So what do you do if you’re Disney?" financial advisers Motley Fool asked. "The company is held to a higher standard as a family entertainment giant, yet it’s not as if teens and pre-teens that are fans of the show will put up with the recasting of the Gabriella character."

It may come down to the nature of the photographs, the Fool speculated. "American Idol" tossed out one contestant because she had posed nude for a professional photographer but another contestant, Antonella Barba, was kept on after photos for private use emerged. Hudgens’ photos fall in the second category.

"Still, it’s not an easy call for Disney," the Fool said. "Publicity is typically a wonderful thing to have, but the company is bound to ruffle feathers no matter what it decides. In that sense, the franchise’s timing is actually pretty good. As the next film graduates from Disney Channel and onto the more liberating big screen, the rules play out quite differently."