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  • Writer's pictureBy The Financial District

Disney's $218-B Doesn't Excite Dip Buyers

Even the cheapest valuation since the COVID-19 pandemic is failing to entice investors into buying Walt Disney Co. shares. Carmen Reinicke reported for Bloomberg News, highlighting losses in its online video businesses and a decline in subscribers to its Disney+ streaming service as some of the challenges the company is currently facing.


Disney's stock has shed approximately $219 billion in market value since its peak at $367 billion in 2021. I Photo: Disney



Disney's stock has shed approximately $219 billion in market value since its peak at $367 billion in 2021.


It is currently priced at a below-average 17 times projected profits over the next 12 months, down from a peak of 77 times in late 2020 when rock-bottom interest rates and enthusiasm for streaming businesses propelled the stock to new heights.



In comparison, Netflix Inc. has experienced a 49% rally this year, now trading at approximately 32 times forward earnings.


This surge comes amid improved profitability and a resurgence in streaming subscriber growth, attributed in part to a crackdown on password sharing. Disney, on the other hand, has seen its shares decline by 7.3% during the same period and is planning a similar move to address these challenges.




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