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Credit: Getty ImagesAccording to a recent filing, Hedge Fund Titan and Billionaire David Tepper dumped his Disney stock holdings in the 3rd quarter of 2022.
According to a Securities and Exchange Commission filing late Monday, Appaloosa Management LP, run by billionaire David Tepper, sold its holdings in The Walt Disney Company. In the filing, Appaloosa no longer listed shares of Disney, which it reported having a 50,000-share stake in each in August. Along with The Walt Disney Company, Appaloosa also disclosed that they sold all of their holding in another entertainment and streaming giant, Netflix.
The Walt Disney Company has dealt with story after story on Wall Street. Last week, the company announced a disappointing earnings report, which resulted in the stock’s decline to a 52-week low. Later in the week, in response to investors’ disappointment, Disney’s Chief Executive Officer Bob Chapek announced the company would implement a hiring freeze to help control costs. It has recently been quite a rollercoaster ride for The Walt Disney Company.
Although Mr. Tepper’s sale of Disney’s stock happened in the prior quarter, this can’t help exude confidence in Bob Chapek. After the recent disappointments, we have begun to hear rumblings of frustrations from shareholders. In response to last week’s earnings report, even CNBC’s Jim Cramer expressed his frustrations during his show.
When Hedge Funds file these reports, they typically decline to comment on their moves. This happens to be the case in this instance. This sale of The Walt Disney Company was interesting because it also coincided with Appaloosa Management’s sale of Netflix. It is unknown if this is more a bearish call on the streaming/entertainment sector or a loss in confidence in Disney and Bob Chapek’s leadership.
Do you think Bob Chapek has been a good Chief Executive for Disney?