Disney’s Stock Is Falling at an Alarming Rate — Is It Time to Worry?
It has been a rough couple of weeks for Disney investors as the company’s stock continues to plummet.
By the time the closing bell rang on Wall Street yesterday, Disney’s stock had fallen to $97.90. Much to the chagrin of shareholders, the day marked the first time since November 8, 2024 that Disney stock closed below $100.
While the stock market as a whole has struggled in recent weeks, Disney’s stock has fallen disproportionately. Zooming out, shares in Disney have slid from $113.80 to $97.90 in less than two weeks, a drop of over 16%.
Photo: Google
Disney has not seen its stock freefall this quickly since November 2021. The question is, why is their stock slipping?
The Reasons For the Drop
The fall of Disney’s stock can largely be attributed to the country’s uncertain economic outlook. Investors are simply not confident that travelers will have money to spend on Disney vacations.
Cinderella Castle
As we saw last year, Walt Disney World, in particular, saw lower crowds throughout the summer. The Most Magical Place on Earth could start hurting if travelers lose their disposable income due to the economy.
Too Early to Panic
It is important to note that the stock market as a whole has had a rough two weeks, so Disney’s recent struggles are not unique. Nevertheless, Disney has still underperformed in the market by a substantial margin.
Photo: Disney
While it is likely still too early for Bob Iger and his team to panic, the stock price will be worth watching. With Disney set to expand its theme parks around the world, the company will want to ensure it is on solid financial footing before it starts spending billions.
