Disney Stock Tops $100 For First Time Since November 2022
Investors in the Walt Disney Company may be feeling some of that patented Disney magic, now that the stock has topped $100 a share for the first time since the company’s infamous Q4 earnings call last November.
It was on that disastrous call that Disney announced it had fallen short of expectations for profit and key revenue segments during the fiscal fourth quarter. These disappointing results, combined with CEO Bob Chapek’s subsequent internal memo announcing layoffs and hiring freezes, finally spurred the Disney Board into action.
Less than two weeks after the November 8, 2022 call, the Board of Directors, led by Christine McCarthy, ousted Chapek and brought back former CEO Bob Iger to helm the company.
A New Chairman
While Iger’s return was celebrated by investors and Disney fans alike, the returning CEO still has his work cut out for him. Disney still has issues with streaming profitability, their stake in Hulu, and struggles at ESPN to contend with.
This week’s stock surge has been largely fueled yesterday’s announcement that former NIke CEO Mark Parker will be brought on as the new Chairman of the Board.
This news, combined with a slew of announcements regarding the guest experience at Walt Disney World, have many feeling bullish about the future of the company, specifically under Bob Iger.
An Upcoming Battle
While things appear to be looking up for the Disney company, there is also a dark cloud on the horizon. Activist investor Nelson Peltz is making a power play to join the company’s board. He may even ignite a proxy battle to win shareholder support for the move.
Peltz’s Trian Fund Management, acquired an $800 million stake in Disney in November. Peltz has since become a vocal critic of Iger. He has however, insisted that he does not want the CEO to resign.
Among Peltz’s demands from the Walt Disney Company are more cost cutting measures and a succession plan for the CEO position.
Peltz has also been highly critical of Disney’s decision to purchase Fox, although that is now largely moot.
A Rebound Year?
No matter the outcome of Peltz’s bid for a board seat, Disney investors will be looking to bounce back after a disasters 2022. Shares of Disney stock fell roughly 45% over the course of the year, marking Disney’s worst since 1974.
With Iger back at the helm however things seem to be looking up. Disney will now look to hold the $100 level and grow from there!
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