Credit: Inside the MagicThe value of Walt Disney Company stock is surging as the proxy battle for control of its board of directors nears, suggesting that trust in CEO Bob Iger may be stronger than doubters think.
For the last year, Disney stock has been on a rollercoaster of ups and downs, which reflects the multiple conflicts the company is going through. Several years of theatrical flops like Strange World (2022), The Marvels (2023), and Wish (2023) made a major dent in consumer confidence toward Disney, ultimately leading to the Mouse House losing its global box office crown for the first time in nearly a decade.
At the same time, Disney World and Disneyland (and other Parks around the world) saw diminishing attendance, which not even the rapid inflation of prices could fully make up for. Finally, the sheer number of lawsuits Disney is involved in, including a massively embarrassing public loss to Florida Governor Ron DeSantis, spelled further financial trouble for the company.
Related: Disney CEO Bob Iger Caught Lying: Aggressive Ticket Price Increase Incoming
However, the most recent earnings report call by Bob Iger seems to have soothed a lot of shareholder anxiety about Disney, leading to a rapidly rising value. Currently, as of time of publication, Disney stock is trading at approximately $110 per share (per CNBC). That is an over 20% increase in price since the beginning of 2024 when it was trading at $90.10.
Here’s an artist’s conceptual take on the increasing value of Disney:
To be fair, the current Disney stock price is significantly below its all-time high of $201.25 (per StatMuse), which it crested at on exactly this date in 2021. On the other hand, the reason something is called an “all-time high” is because, by definition, all other values are lower than it.
During the earnings call, Bob Iger announced a notable financial uptick for the company, a huge investment into the behemoth Epic Games, and an even larger, multi-billion infusion of cash into Disney Parks. This seems to have swayed shareholders to his plans for the future exactly when he needed it.
In just over a month, Disney shareholders will vote whether to maintain the current Walt Disney Company board of directors (of which Bob Iger is a member) or whether it will elect new members, who are all but guaranteed to backtrack on the CEO’s plans. Currently, billionaire investor Nelson Peltz and former Disney CFO Jay Rasulo are aggressively campaigning for board sets, while Blackwells Capital has set itself up as a third alternative to both the status quo and the new duo.
Related: Former Disney Chief Thinks He Can Save Company From Bob Iger
Although Nelson Peltz and Jay Rasulo initially came out hard against Bob Iger and his policies, the duo recently began softening their stance toward the executive. It is likely that the increased consumer confidence that is pushing Disney stock to surge is compelling the two Trian Partners nominees to potentially keep Iger on board. Their entire proxy battle is based on the claim that only they can figure out how to increase the value of Disney stock and, thus, shareholder profits.
If it is already exploding without them, what do shareholders need with new management?
What do you think is causing Disney stock to rise? Tell us in the comments below!