Disney Stock Could Reach A Nine-Year Low
When Bob Iger returned to the helm of The Walt Disney Company in November 2022, it seemed as if happy days were here again for Disney.
After a dismal earnings call and a series of disastrous PR episodes, Bob Chapek was unceremoniously dismissed by Disney, allowing Iger to ride in as a knight in shining armor.
Photo: Chip Somodevilla/Getty Images
Less than a year later, however, reality has set in, and Disney may be in a worse position than it was under Chapek — at least from a stock perspective.
Disney’s Stock is Nearing A 9-Year Low
Shares of The Walt Disney Company are flirting with their lowest close since 2014. The stock was down 2.2% this morning to $83.95. Should Disney close below $84, it would be the first time the stock ended a day that low since October 17, 2014.
Even if Disney can hold the $84, the stock has already hit a new 52-week low.
While Disney continues to grab headlines due to their ongoing feud with Florida Governor Ron DeSantis, the company’s Wall Street struggles have more to do with the company’s future in streaming.
How Disney Can Turn it Around
Iger has been open that Disney will be transitioning from traditional linear television to streaming, In an interview with CNBC, the Disney CEO even revealed that the company would consider selling off its television stations as they “may not be core” to Disney.
In order to turn their stock around, Disney is going to have to prove that streaming can be possible. Although the losses have lowered in recent quarters, Disney’s direct-to-consumer business continues to lose money. These losses will only be exacerbated (in the long term) if Hollywood remains on strike.
Image Credit: Disney
At the same time that Disney’s streaming services struggle to reach profitability, ad revenue in linear television has continued to dry up. For Wall Street to have faith in Disney again, the company is going to have to have to navigate an uncertain future in media.
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