Disney Stock Plummets to 9-Year Low As Streaming, Studios, Parks Struggle
By Movieguide® Contributor
Shares of Disney’s stock closed at $82.47 last Thursday, marking the lowest close the company has seen since Oct. 16, 2014, when it ended the day at $81.74, Reuters reported.
“From our point of view, Disney has problems across just about every one of its businesses,” KeyBanc Capital Markets analyst Brandon Nispel told MarketWatch.
Disney’s three main businesses—streaming, studios and parks—have all had poor years. This has made it difficult for Disney, who has previously been able to point to one of these avenues as a success even if the others were struggling.
Over 2023, however, the company has, at large, only seen failure.
On the streaming side, Disney+ has lost subscribers, and with another round of price hikes to boost profitability, many users have said they will drop their subscription rather than pay more for a service they hardly use, as Movieguide® reported.
Disney’s studios “looks to forever be a loss leader,” as the company pumps millions of production dollars into movies that cannot find their place at the box office. Disney had struggled to find a successful new IP, especially in their animated children’s movies, largely due to its insistence on promoting immoral, new-age themes.
To compensate, the company heavily leans on its older IPs, such as Marvel and Star Wars, which many people have now grown tired of.
Finally, Disney’s parks have also struggled to draw attendees this year due to ballooning costs that have placed a Disney vacation outside the price range of many families. Even with quality deals, many families have shirked the parks in favor of more cost-effective vacations.
Earlier this summer, Disney’s stock plummeted over the same set of concerns. Although the stock fluttered close to the 2014 low, it never fell below it. Now, as the summer comes to a close, investors have even less faith that the company will turn itself around, at least in the near future.
Movieguide® previously reported:
Once an untouchable giant in the media space, Disney has fallen from grace in recent years as the company struggles to connect with its audience and pushes immoral themes in its movies and shows.
Disney’s struggles have started to catch up with the business as the stock price approaches its 52-week low. On Monday, the stock closed at a price of $85.56, barely above its low closing of $84.17 on Dec. 28th. If the stock were to drop two more dollars and dip below $83.83, it would be the company’s lowest closing since 2014.
Investors have been seriously questioning Disney over the past year as the company has struggled in nearly every aspect of its business.
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