Disney’s Stock Continues Dismal Performance

This post includes affiliate links. If you purchase anything through these affiliated links, 247wallst.com may earn a commission.

To help holders of its battered-down stock, Walt Disney Co. ( NYSE: DIS ) will need more than a brief success of its studio. So far this year, it has ticked up by just under 4%, while the S&P 500 is 19% higher. A brief rally early in the year is well behind it. Shareholders might have been better off if raider Nelson Peltz had gotten the two board seats he tried to take in a proxy fight. At least his plans to reverse Disney’s fortunes might have worked. The board rebuffed him in April.

Disney’s “Inside Out 2” did exceptionally well at the box office, bringing in $652 million starting in June. Later in June, “Deadpool & Wolverine” had ticket sales of $632 million, making it the most successful R-rated movie in history.

Disney posted earnings in early August. Most were better than expected. However, management hinted that traffic to its theme parks might weaken because consumers could cut back their spending due to a choppy national economy.

For the most recent quarter, EPS rose 17% to $1.39, and revenue grew just over 3% to $23.2 billion. After billions of losses, Disney’s streaming business made a small amount of money. However, the operating profit was only $47 million, as the Disney+ subscriber count hit 154 million. That profit could be short-lived. Disney+ is up against Netflix Inc ( NASDAQ: NFLX ), Amazon.com INc’s ( NASDAQ: AMZN )) streaming business, and half a dozen other media company streaming operations.

Investment bank Raymond James recently downgraded Disney’s stock from “outperform” to “market perform.” One reason was concern about a slowdown in revenue at Disney theme parks. Its note to investors said, “Demand is moderating after a strong post-COVID surge, consumers are still digesting price increases taken in the past ~4 years, and a questionable consumer outlook further complicates the picture.”

Disney is considering who can replace CEO Bob Iger. Based on Iger’s performance, the board should pick up the pace.

Smart Investors Are Quietly Loading Up on These “Dividend Legends”

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option , and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.