Disney Stock Gets Hammered

Walt Disney Co. (NYSE: DIS) CEO Bob Iger held the job from 2005 to 2020. He returned in November 2022 when the board pushed out Bob Chapek, who was briefly his replacement. Iger had the magician’s touch during his first tenure, but that has disappeared.

Disney’s stock is down by 25% this year, while the S&P 500 is 8% lower.

Iger has not been able to fix three of Disney’s important businesses. The first is its huge theme park business, which the company calls “Experiences.” Its revenue rose only 3% in the most recent quarter to $9.4 billion, and operating income was flat at $3.1 billion. Some analysts think the rising ticket prices will cut park attendance. Additionally, the overall economy has slowed, which could damage attendance.

In the most recent quarter, Disney’s streaming business finally made money after losing billions of dollars. However, the sum was small at $293 million, compared to a loss of $138 million the year before. Nevertheless, Disney’s streaming business is up against streaming giants Netflix and Amazon Prime Video, each of which is growing and has had profits for years.

Finally, the movie business has been awful this year, and Disney’s studio is critical to the company’s financial success. Weekly box office ticket sales per all movie studios nationwide have been $7.9 million, down from $12.7 million last year. Disney’s recent “Snow White” release was considered a major failure. The movie cost over $200 million to make, and it has only brought in $83 million in domestic ticket sales.

Iger says he will leave Disney in 2026. Investors should hope he exits sooner.

Disney Has Forgotten How to Make Movies but Sure Is Good at Spending Money on Them

The post Disney Stock Gets Hammered appeared first on 24/7 Wall St..