This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Key Points
- Though Walt Disney Co. (NYSE: DIS) stock has risen lately, overall its performance remains a disaster.
- Investors remain skeptical about whether the entertainment giant is turning around.
- Take this quiz to see if you’re on track to retire. (sponsored)
The promise of a new chief executive officer and mediocre earnings helped lift Walt Disney Co. (NYSE: DIS) stock recently. However, the performance remains a disaster. After a run-up in late 2020 and early 2021, shares have fallen from $190 to $116. Over a longer, five-year period, shares are down 21%, while the S&P 500 is 92% higher. Disney remains a traditional media and theme park company; these legacy businesses do not impress investors.
Disney’s Past and Future
For some reason, investors drove Disney shares up in late October when the company announced that current CEO Bob Iger would be replaced in early 2026. That is far enough in the future to see why it matters. Iger has been CEO since November 2022. He held the same position from 2006 until 2020. He was then executive board chair until the end of 2021. His replacement in 2020, Bob Chapek, held the CEO job for under a year.
Iger has made the company’s streaming business profitable, but it has lost several billion dollars since the launch of Disney+. Ironically, the big push into streaming was Iger’s decision. Disney+ launched in November 2019. It still faces tremendous competition from industry leaders Netflix and Amazon Prime Video.
In the most recently reported quarter, Disney’s revenue rose modestly to $22.6 billion year over year, and per-share earnings rose 79% to $0.25.
Disney’s media and sports businesses, which include ESPN, its film studios, and legacy media, including ABC, did relatively well last quarter. However, the huge theme park division, which the company calls “Experiences,” struggled. Revenue rose only 1% to $8.3 billion. Operating income fell 6% to $1.7 billion. The division is nearly half of Disney’s total operating income.
The open question about Disney’s parks is whether they have become too expensive. CNBC estimates a one-day park pass per person averages between $150 and $190.
Iger has started to turn Disney around, but the process still needs to be completed. The share price shows the market is skeptical.
Disney Price Prediction and Forecast 2025-2030
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
