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Monday, May 20, 2024

Disney Stock Marks Lowest Close Since October 2014

On Thursday, August 24, 2023, The Walt Disney Company stock closed at $82.47. This is the lowest close for the stock since October 16, 2014, per Reuters.

Amidst a larger stock market sell-off, streaming-dependent content engines have been especially hard hit. Netflix, Disney’s main competitor in the direct-to-consumer business, saw a 4.82% drop in their stock today. Disney’s stock performed similarly poor, losing 3.91%, outpacing the broader S&P 500 decline of 1.35% today by close.

The latest drop on Disney’s stock to $82.47 follows a brief jolt to $92.53 on August 10th following less catastrophic earnings results than those which were expected.

Daily chart of $DIS performance over the past two months. (Courtesy: TradingView)

It should be noted that while today marks the lowest close for the stock in nearly 9 years, Disney briefly traded lower than today’s $82.47 close on March 18th, 2020. Amidst intra-day panic on how lockdowns would affect Disney’s parks businesses, the stock briefly dipped to a low of $79.07 before rocketing back up to close the day at $88.80.

While today’s price action on Disney’s stock does not demonstrate confidence, it must be highlighted that the poor performance today comes ahead of the U.S. Federal Reserve Chair Jerome Powell’s speech on Friday. Some investors fear this year’s Jackson Hole speech could spark a similar market sell off to that which occured last year.

Disney, having transformed into a speculative, tech-adjacent stock courtesy of CEO Bob Iger’s actions over the past two decades, make it a clear sell in the eyes of some bearish investors. Rising interest rates and greater pressure on corporate bonds provide little optimism for the future of the heavily capitalized Disney Company. Labor strikes and plateauing theme park performance are adding additional bearish sentiment.

Disclaimer: The above information does not constitute financial advice and we cannot guarantee its accuracy. Do your own research and consult with a financial advisor before making important investment decisions.

Brayden produces quality Disney news commentary videos at Mickey Views. He is also working on feature-quality documentary films at "Address Unknown."


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