In 2023, Disney stocks hit record lows, not seeing shares as low since 2014.
The stock pitfall hit after the Hollywood writers’ and actors’ strike, and despite the low stock prices, Disney CEO Bob Iger assured stakeholders that he was optimistic about the outcome of the strikes and future of the Walt Disney Company. Throughout all this, a new investor was building stake. Here’s what you need to know!
According to CNBC, ValueAct is a popular investor within the tech realm, with active shares in popular brands like Adobe, Microsoft, New York Times, Spotify, and Salesforce. During the actors’ and writers’ strikes in summer 2023, ValueAct began buying Disney shares.
According to CNBC, “ValueAct believes that Disney’s theme parks and consumer products businesses and their $10 billion in EBIT (earnings before interest and taxes) are alone worth low $80s per share, ValueAct’s approximate cost basis in the stock.” ValueAct is now one of the leading investors in the Disney brand.
An investor like ValueAct, who predominantly owns shares in the tech industry, has good reason to purchase so many shares of The Walt Disney Company. Disney is the type of company who survives and thrives with the use of technology. Think of all innovative technologies used in the theme park rides and attractions, animation studios, and even within the streaming industry.
Bob Iger shared at the final earnings call of 2023 that the future of stakeholders was bright based on a high return on capital, as overall revenue was up for fiscal 2023 compared to last year, as well as Q4 of this year compared to Q3 of this year.
ValueAct has experience in, “creating bundles, pricing tiers and advertising stacks that have led to less churn, more pricing power, higher average revenue per user and even better advertising technology,” all of which Iger shared that he was aiming do accomplish within the streaming industry.
We’ll continue to keep you updated with more Disney news and updates, so make sure to follow along for more so that you’re always in the loop.
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What do you think of this new investor? Let us know in the comments!
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