In This Article:
Disney (DIS) stock has plummeted by over 50% over the past two years. Yahoo Finance Entertainment Reporter Alexandra Canal outlines the uncertainty surrounding various factors, including CEO Bob Iger's renewed tenure after former CEO Bob Chapek's departure and the media company's restructuring of streaming and linear TV assets.
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This post was written by Luke Carberry Mogan.
Video Transcript
- We're taking a look at Disney.
Yahoo Finance's Alexandra Canal has the details.
ALEXANDRA CANAL: Hi, Josh.
Well, you don't need me to tell you that the magic kingdom is in disarray.
You can just take a look at the stock price.
Shares of Disney down over 50% over the past two years, and down around 12% since the return of Bob Iger nearly one year ago.
Iger served as Disney's CEO from 2005 to 2020, and he handpicked Bob Chapek as his successor.
But Chapek nearly two-year reign was a challenging one.
Disney's parks business was clobbered during the pandemic.
And in Chapek's final quarter, the company posted revenue and earnings that missed expectations, while its direct to consumer streaming segment saw a whopping $1.5 billion loss.
And then, less than two weeks after that, disastrous report, Iger was back in that coveted CEO seat.
But his surprise return has not brought back the magic that shareholders had initially expected, with Disney still facing some key challenges like a decline in the traditional TV business, the possible sale of linear assets like ABC, and cable channels like FX, Freeform and National Geographic.
We've also seen weak subscriber numbers for streaming, coupled with a tough advertising environment and slowing demand for its parks business.
And then of course, the overarching question of succession, as Disney is still trying to launch new initiatives like an ESPN direct to consumer platform.
So there are clearly so many unique challenges for this company.
Activist investor Nelson Peltz recently launched a renewed attack on the media giant amid some of these hurdles.
But there has been some optimism on the Street.
The stock currently has 30 buy ratings, eight holds, and two sells.