Disney stock has taken a big hit despite changes and movie openings. What will it take to rebound?
Highs and Lows
It is no secret that Disney stock has been a bit of a rollercoaster. And while this may seem fitting for a brand known in part for its world-class theme parks, it is certainly not a fun ride for investors.
In November, Disney took such a big hit that analysts called for former Disney CEO Bob Chapek’s firing. The recent Disney (DIS) quarterly earnings report came in with a giant thud as the corporation reported huge losses in key areas. Disney stock dropped more than 12% in a single day. Year to date, DIS stock dropped nearly 44%.
Of course, by now, anyone who has been keeping up with the news knows that Bob Chapek was fired and replaced with former CEO Bob Iger. Unsurprisingly, this big change set off a huge reaction in the Disney community. You can read about the behind-the-scenes details that have emerged here.
The CEO swap also had effects on the stock market. Disney stock prices climbed after the replacement. This is unsurprising as Wall Street has a historic love for Bob Iger. Alas, the climb was only temporary.
After some measure of rebound, Disney stock took another huge hit. Yesterday, December 19, 2022, DIS stock hit its lowest point since 2020. It dropped more than 4% and closed at $85.78.
DIS stock hit its lowest point since 2020 at $85.78.
Some outlets are correlating the drop with the opening weekend box office performance for the newly released Avatar: The Way of Water. While the movie made millions, it did not live up to projected earnings. However, opening weekend earnings are not necessarily indicative of a film’s overall success. Also, there are likely a number of other contributing factors beyond a single film opening.
Of course, some measure of fluctuation is to be expected in the market. As it stands, there has been a marginal rebound this morning. Hopefully, the company will find itself on an upward trajectory as it enters its second century of business.
Are you a shareholder? What do you think of today’s numbers? Let us know in the comments below and on Facebook.