The Walt Disney Company’s stock price dropped 3.9% on Thursday, reaching its lowest close in over nine years. Despite Bob Iger’s return, a reduction in streaming losses, and positive results from Disney Parks, investors are still wary that Disney can successfully navigate a media landscape that is increasingly unprofitable for the studio.
Walt Disney stock continued its bizarre three-day slide, plummeting by 1.2%. According to Dow Jones Market Data, Disney (ticker: DIS) shares have fallen 3.1% to $83.14, putting them on track for their lowest close since October 2014. The entertainment behemoth weighed down the Dow Jones Industrial Average by 17.5 points on Thursday, making it the third worst performer in the index.
Take a look at below tweet:
The Walt Disney Company’s struggles continued on Wall Street today with share prices currently down over 3%. If the stock closes below $83.83, it would be its lowest closing price since October 16, 2014. pic.twitter.com/QBsbnTcdn5
— cartoonbrew.com – Animation News (@cartoonbrew) August 24, 2023
On July 28th, Disney was highlighted as a buy by Barron’s_. The share price has dropped 3.3% since then. Boeing (BA) was the Dow’s worst performer. Concerns regarding quality difficulties tied to supplier Spirit AeroSystems (SPR) sent Boeing shares down 3.9% to $219.88. The aircraft manufacturer’s stock accounted for 56.6 points of the Dow’s decline.
Disney CEO’s Controversial Remarks on Hollywood Turmoil
Iger, Disney’s CEO, made headlines recently for saying that striking Hollywood writers and actresses were “not realistic” in their demands. This was a rare public relations disaster for a CEO who has usually been careful with his remarks.
The future of Disney’s stock, though, will be determined not by ill-advised strike remarks or a public fight with Ron DeSantis, but by how the corporation adapts to a new media world. Recent results have not changed Wall Street’s opinion of Disney’s future. Iger and the board must immediately reverse the company’s fortunes.
Take a look at the below posts in which we have covered other venture-related posts:
- Nvidia’s Ascendance Continues: Shares Rise 0.5% Amid High Expectations
- Can the Fed Bring Inflation Under Control Without Causing a Recession?
Disney’s Odyssey in a Rapidly Changing Media Universe
Ad revenue in traditional linear television is fast declining, creating a Gordian knot for Disney. Meanwhile, streaming has not yet demonstrated that it is feasible. This problem severely hampers Disney’s capacity to plan for the future.
Iger has so far presented a plethora of answers to this basic problem. Regarding traditional television, Iger has been candid about the possibility that ABC, Freeform, National Geographic, and FX aren’t essential to the company’s future. On the other hand, Disney is dead set on streaming ESPN, which is essential to the company’s future plans. Sports media will need to make significant adjustments to accommodate this.
Disney has made several adjustments to its streaming services during the past 12 months. Firm officials have stated that in order to save costs, Disney+ and Hulu will both experience price increases, the firm will crack down on password sharing, and it will eliminate content from both libraries. For more updates, you can join us on our Twitter account.