Disney Stock Limps To 9-Month Low As Yearslong Rut Continues

Core Viewpoint - Disney's stock experienced a significant decline after the company reported concerns regarding weakening demand in its parks division, despite exceeding quarterly profit and revenue expectations [1][2]. Group 1: Stock Performance - Disney shares fell nearly 4% to just above $86, marking the lowest intraday level since November 8, 2023 [2]. - The stock's current price of $86.31 is nearly the same as it was 10 years ago, while the S&P 500 has increased by over 170% during the same period [5]. - Since CEO Bob Iger's return in November 2022, Disney shares have returned -5%, contrasting with the S&P's 36% positive return [5]. Group 2: Earnings and Market Reaction - Disney's earnings release indicated a "demand moderation" in its Experiences unit, which includes theme parks and contributed approximately 52% to the company's global operating profit last quarter [2]. - CEO Bob Iger noted that lower-income consumers are experiencing stress, leading to tighter discretionary spending [2]. - Despite the negative market reaction, some analysts maintained a positive outlook on Disney's results, suggesting that the emotional response may not reflect the underlying performance [4]. Group 3: Analyst Perspectives - Analysts tracked by FactSet have an average price target of $122 for Disney stock, indicating a potential upside of about 40% from its current price [6]. - Rosenblatt analyst Barton Crockett lowered his price target from $129 to $122 but still holds a buy rating, citing Disney's "meaningful asset value" [6]. - Disney's price-to-earnings ratio (P/E) of 16.3 is approximately 35% lower than it was in April, reflecting decreased market confidence in the company's growth potential [6][7].