Walt Disney Co. (NYSE: DIS | DIS Price Prediction) was in a tailspin when Bob Iger rejoined as CEO in November 2022. The nightmare of a poor stock performance has been a result. In the past five years, Disney’s stock is down 10%. The S&P 500 has risen 100% in the same period.
Iger was supposed to corral Disney’s talent and steady divisions that had faltered under Bob Chapek, who took the job when Iger gave up the CEO position in 2020. Before that, Iger had held the job since 2005. Via a series of acquisitions, Iger made Disney into a powerhouse. He stayed with the company during Chapek’s tenure, serving as executive chairperson for much of that time. Some critics claim he never left Disney at all. That means his contribution to Disney’s long-term failure is greater than it seems.
Among the biggest mistakes Iger made late in his first time as a CEO was the launch of Disney’s streaming product Disney+. The service kicked off in November 2019. It had about 500 movies from Disney, Pixar, Marvel, Star Wars, and National Geographic. It was too small and had too little content to compete with industry leaders Amazon and Netflix. In February, Forbes put the operating loss of Disney+, the proxy for which is Disney’s Direct To Consumer (DTC) segment, at $10.7 billion since the service started. It has begun to make a very modest amount of money but is unlikely to recoup its losses in present-day dollars.
Iger’s new turn at the helm has not helped Disney’s overall results one bit. In the most recent period, revenue rose only 2% to $23.7 billion. Income from operations before taxes was up only 4% to $3.2 billion. Without strong results from its Experiences segment, which includes Disney’s parks, the figures would have been much worse. Its revenue rose 8% during the period to $9.1 billion. Its operating income rose 13% to $2.5 billion.
Ultimately, Iger’s main issue is that he has failed to generate significant returns from most of Disney’s assets.
Walt Disney Stock Price Prediction and Forecast 2025-2030
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