Disney’s Stock Slips Below $80 — Could Be Heading For Lowest Close In 9 Years
The Walt Disney Company’s stock has continued to be battered on Wall Street, as shares in the company recently fell to their lowest level since the March 2020 COVID-19 selloff.
Shares of Disney fell below $80 today and have so far been unable to reclaim that benchmark. Should shares of Disney close below $80, it would be the first time the stock closed that low since October 16, 2014.
The latest dip in Disney’s stock value continues a disheartening trend for fans and investors alike.
Bob Iger In Hot Water
When Bob Iger was brought back to the company in November 2022, it was expected that he would rectify the mistakes of his predecessor and get Disney back on the right track.
Iger’s return however has not gone according to plan. As Disney continues to lose advertising money in linear television, the company has yet to find profitability in streaming.
The studio’s problems have only been exasperated by the ongoing WGA and SAG-AFTRA stikes, which have ground Hollywood production to a halt.
The normally measured Iger found himself in hot water in June, when he told CNBC that the striking Hollywood writers and actors were not being “realistic.”
“There’s a level of expectation that they have, that is just not realistic. And they are adding to the set of the challenges that this business is already facing that is. Quite frankly, very disruptive,” he said.
Disney’s Litany of Probmes
In addition to its muddled streaming outlook, Disney has made headlines for feuding with Florida Governor Ron DeSantis, and the uneven results that the company has delivered at the box office.
Disney also currently finds itself in a deadlock with Charter Communications over a new carriage deal. Over 14 million Spectrum subscribers have been blacked out from Disney’s stations while the two sides remain in a stalemate.
Still, it is linear television and streaming that investors seem to be hyper-focused on. If Iger wants to salvage his second term as CEO, he is going to need to guide the company into a new era. Whether or not he is the man for the job, remains to be seen. One thing is clear however, the honeymoon is over.