Despite the best efforts of Walt Disney Co. (NYSE: DIS | DIS Price Prediction) management and board, the company’s poor image on Wall Street will not go away. Its stock, down 45% in the past year, refuses to post even the weakest rally. Its shares are also down over the past month.
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Disney’s board made the unexpected move of giving a three-year contract extension to CEO Bob Chapek.
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Disney’s problems can be divided into three pieces. One is that earnings fell in the most recent quarter, down 48% to $0.26 per share. The second is that the company’s advertising revenue likely will be hit by a recession.
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The third problem is the worry that the streaming media business in America is saturated. Certainly, the most recent numbers from Netflix show that. While Disney has 205 million subscribers, the figure grew very slowly in the most recent quarter.
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There continues to be the nagging issue that Chapek is not as talented a chief executive as his predecessor, Bob Iger, who ran Disney from 2005 until 2020. Iger was one of the great entertainment CEOs of the 21st century. As Disney navigates a tough period, he would come in handy.
Trouble at Disney Will Not Go Away
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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