Disney stock is down 50% from high, facing challenges in streaming, TV, and theme parks

From Nasdaq: 2024-06-25 00:56:04

Disney stock (DIS) is currently trading at $102 per share, down 50% from its high of $202 in March 2021. Factors behind the sell-off include slowing subscriber growth in streaming, weak performance in linear TV, and uncertain outlook for theme parks due to higher costs. The stock has underperformed the S&P 500 for the last 3 years.

In contrast, the Trefis High Quality (HQ) Portfolio outperformed the S&P 500 each year over the same period, providing better returns with less risk. With the current macroeconomic environment uncertain, Disney may face challenges and underperform the S&P. There is potential for gains if Disney can recover to its pre-shock highs.

During the 2022 inflation shock, with rates peaking at 9%, Disney stock suffered a decline but is now poised for recovery. Looking back at the 2007-2008 crisis, DIS lost over 40% of its value but rebounded strongly. Disney’s revenues have improved, and with the Fed’s efforts to tame inflation, DIS stock has the potential for gains.

In June 2024, Disney stock had a -2% return MTD, 12% YTD, and -3% return from 2017-2024. The S&P 500 had a 4% return MTD, 15% YTD, and 144% return from 2017-2024. The Trefis Reinforced Value Portfolio had a 4% return MTD, 8% YTD, and 666% return from 2017-2024. Investors may see gains with Trefis Market-Beating Portfolios.



Read more at Nasdaq: As Streaming Business Approaches Profitability, Can Disney Stock Double To $200?