Walt Disney's Stock: A Look at its Recent Challenges and Future Prospects under New CEO Bob Iger
With a market capitalization of around $170 billion, Walt Disney is one of the largest entertainment companies globally. However, with its stock price down over 30 percent from last year, investors may be questioning the value of the company's stock.
After Bob Iger's departure as CEO in February 2020, Bob Chapek took over and pledged to continue Iger's successful path. However, Chapek faced many difficulties, leading to his departure in November 2022 and Iger's return to the CEO role.
Iger made key personnel changes and promised to streamline costs and give creative teams more decision-making authority. Under Chapek's watch, Disney+ saw exponential growth, with 164.2 million subscribers worldwide. Still, it wasn't profitable, and subscriber growth became increasingly difficult in recent quarters, leading to criticism from activist investor Nelson Peltz.
Disney lost 2.4 million Disney+ customers in the first quarter of fiscal year 2023, the first case of a shrinking subscriber base, prompting Iger to announce a plan to find $5.5 billion in savings in the coming years, including cutting $3 billion from the company's content division.
While Peltz withdrew his proxy challenge after Iger's announcement, some analysts are concerned that Disney's decision to cut content spending could jeopardize future revenue growth, especially as the company plans to appoint a new CEO by early 2025. The company has invested heavily in Disney+, spending around $33 billion in the last fiscal year, and some investors may worry about future growth.
However, the company still boasts a strong park business, with $7.4 billion in revenue in the first quarter, up from $5.5 billion in the previous quarter, and a diverse range of other assets. With Iger back at the helm, investors will be eagerly watching to see what steps the company takes next to address its streaming ambitions and navigate the challenging entertainment industry landscape.
@FOREXN1 no never We need a separate politics from corporations
financialfreedomgoals101
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too much political agenda and less creativity. I don't see the company will have the same growth with this mindset.
jay_y
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Would you consider to LONG at 80 or 43 USD?
FOREXN1
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@jay_y, Depends on your strategy , if you use a PAC on this Stock or just do Trading. I'll prefer the first choice.
DaytimeTinkerer
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Why even consider a company that is self imploding? There are so many other companies that are worth investing other than this crap stock. Analysis is one thing, but careful selection of a worthy company is another. Wouldn't invest a penny into this crap
The new little mermaid looks like an Alien, but they are doing some cool things with Star Wars series atleast. Overall I'm not sure, I feel like HBO Max is gonna eat their lunch