Why Dis Stock Is At A Nine-Year Low
Date
8/29/2023 3:11:58 PM
(MENAFN- Baystreet.ca)
Why DIS Stock Is at a Nine-Year Low The movie studio and streaming business is in a general decline. Disney (DIS) trading at a nine-year low on Aug. 25, 2023, marks a pivotal moment for the firm. Despite Bob Iger returning as CEO, shareholders who held since Oct. 2014 made no money.
Uncertainty is high for Disney as it implements a turnaround plan. To reduce losses from Disney+, its streaming service, the company cut costs, hiked subscription fees, and increased advertising. This risks increasing cancellation rates. At a few bucks, Disney+ is worth having but at higher prices, and with more ads, customers could walk.
DIS stock does not have a valuation advantage. Fewer bulls are willing to pay a premium. Conversely, Paramount (PARA) and Warner Bros. Discovery (WBD) trade at a discount. Comcast (CMCSA) is at fair value, despite already bottoming at $30 from last year.
Issues
Disney does not produce content that appeals to its audience. It is in a political battle in Florida, further hurting the brand and distracting executives.
The firm could sell off its assets in Florida. This raises its cash levels and lets it foon the core business.
Disney needs to revive its park business. Weakening attendance will hurt cash flow. Similarly, the cruise ship business needs to stop losing money.
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