The Walt Disney Company’s stock (DIS) price continues to fall. The price for one share of Disney stock hovered between $82 and $83, closing at $82.46. This closing price sunk below the 9-year low of $83.83 set back on October 17, 2014.
Disney’s stock price has been pummeled since its all-time high of $201.91 price per share set back on March 8, 2021. Losses in streaming and at the box office have sunk investor confidence. Meanwhile, Disney’s most reliable revenue engine – parks and resorts – have had their own issues with attendance and consumer satisfaction.
Disney’s stock price hasn’t stabilized after Bob Iger returned to take over the role from Bob Chapek in November 2022. In fact, Iger’s contract being extended into 2026 seems to have added more fuel to the fire due to Disney’s lack of a CEO succession plan.
What’s next for Disney shareholders? The company has stated multiple times that a “modest dividend” will return in 2023. It’s unclear how much the dividend will be or when it will be reinstated. Beyond that, there aren’t too many bright spots on the horizon.
Disney’s domestic parks, Walt Disney World and Disneyland, don’t have any major expansions announced. Anything announced in the near future won’t open for several years based on Disney’s slow construction timelines. Meanwhile, theme park competitors such as Universal are moving quickly on expansion in the hopes of eating into Disney’s market share.
There isn’t a ton of optimism on the studio side either. Pixar’s Elemental shook off its poor start and became a box office success, but Disney doesn’t have much in the pipeline to inspire investors. All of Disney’s recent Marvel and Star Wars content has been met with mixed (at best) reviews. The studio and streaming services need some big hits.
Finally, there’s the ongoing legal battle in Florida against Governor Ron DeSantis. That fight has been covered ad nauseam and needs no further explanation. It goes without saying that Disney has a lot on their plate – and plenty of distractions – at this time.
Will Disney’s stock price sink lower? What has to give for Disney to make some drastic decisions?