Disney Stock Tanks After Surprising Comments From Bob Iger

Disney is posting significant losses on Wall Street.

As its proxy fight finally wraps up, Disney is facing another potentially catastrophic event, with the company’s stock price tanking hours after its annual shareholders meeting. For the last several months, The Walt Disney Company has been embroiled in a controversial fight against Trian Partners founder Nelson Peltz, who sought a board seat in the company. Peltz, along with several other high-level executives like former Disney employee Jay Rasulo, began the “Restore the Magic” campaign, which sought to undermine Bob Iger and convince other shareholders that the CEO was unfit to lead the company.

Disney’s shareholder meeting came and went, and while the company’s proxy battle against Peltz came to an end, the troubles have not stopped for Disney or Bob Iger.

Walt Disney Company Stock Price Drops

Walt Disney Co. stock, under the leadership of Bob Iger, is experiencing a downtrend, closing lower by 3.13% on the day. — Credit: ITM

Mere hours after Bob Iger led The Walt Disney Company’s shareholders meeting, the company is already bleeding on Wall Street. At the time of publication, Disney’s stock price was already down $3.84, a drop of 3.13% since the previous market close. The Walt Disney Company is down a total of 1.01% over the last five days. The Walt Disney Company currently sits at a stock price of $118.98.

This downturn follows the disappointing and lackluster comments Iger made during the meeting. Alongside some exciting revelations regarding Disney’s upcoming Moana 2 (2024) sequel, Disney and Iger really had nothing to say. Concept art for a new Avatar-themed land in Disneyland was revealed, but aside from comments about Disney’s proxy fight, nothing substantial was declared. Disney previously announced that it would be investing $60 billion within its theme park division over the next decade, and with such a large budget to play with, Disney has kept its cards rather close to the vest.

Many had hoped to hear some big news during the call, especially with Epic Universe, Universal’s newest theme park, on the horizon. This massive expansion to the Universal Orlando Resort will debut in 2025 and will bring along with it dozens of new rides, attractions, and lands for guests to explore. Epic Universe seeks to fundamentally change the theme park landscape and will undoubtedly turn up the competition between Universal and Walt Disney World. It was surprising not to hear anything substantial be announced or confirmed from Bob Iger today, as many were hoping the CEO would have big news to drop.

Bob Iger became the CEO of The Walt Disney Company in 2005, taking over the reins from veteran executive and leader Michael Eisner. Over the next few decades, Iger would guide DIsney through some of its most critical moments, overseeing the company’s purchases of massive franchises and brands such as Marvel Studios and Lucasfilm. Massive projects were greenlit under Iger’s supervision, such as expansion projects at both Disneyland and Walt Disney World Resorts, as well as the launch of Disney’s in-house streaming platform Disney+.

Bob Iger returned to The Walt Disney Company in late 2022 following the bombshell announcement that his successor, Bob Chapek, would also be his predecessor. In his short two-year span as CEO of Disney, Chapek managed to become one of, if not the most controversial and decisive figures in the company’s history, with many fans criticizing his profit-centered approach to theme parks. Chapek admittedly was dealt an unfair hand, becoming CEO of The Walt Disney Company just months before the entire world would shut down due to the outbreak of COVID-19.

What are your thoughts on Bob Iger and The Walt Disney Company?