Disney (DIS) has been a disaster.
Over the last few weeks, the stock fell from about $125 to $91.80.
But that’ll happen when a company misses on earnings and guidance, with streaming losses widening. In its fourth quarter, the company posted $20.2 billion in sales, which missed expectations for $21.3 billion. Net income of $162 million was short of $788 million estimates. Even Disney Parks took a hit.
However, things could turn around, with Bob Iger returning as CEO. “The move comes less than five months after Disney’s board backed Chapek and extended his contract by three years, a vote of confidence that was apparently reconsidered. Chapek’s original contract would have expired this coming February,” says Barron’s.
Helping, Nelson Peltz’s Trian Fund Management bought more than $800 million worth of Disney stock earlier this month, as noted by The Wall Street Journal. Reportedly, Trian is seeking a set on the Disney board. Also, MoffettNathanson analyst Michael Nathanson upgraded Disney to Outperform from Market Perform with a $120 price target. And Morgan Stanley just said Iger’s return helps improve Disney’s risk and reward.