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Disney stock hits new 9-year low; What’s wrong with DIS?

Disney stock hits new 9-year low; What's wrong with DIS?

So far in 2023, Disney (NYSE: DIS), the renowned media and entertainment giant, has seen a disappointing performance in the stock market

The company has witnessed a double-digit percentage drop as investors grew increasingly frustrated with mounting losses in their streaming division, exacerbated by a bleak economic outlook. 

Additionally, Disney faced significant backlash earlier in the year due to a controversial campaign, further contributing to its sluggish stock performance.

This downturn continued on Wednesday, October 4, after DIS closed yet another trading session in the red, although this time hitting a 9-year low. 

The stock closed down 0.28% at $79.32; however, it previously tumbled to $78.73, a level last time touched in October 2014. 

DIS 10-year price chart. Source: Finbold

What’s going on with Disney?

Disney’s 2023 stock market performance comes as a result of a string of headwinds troubling the mass media company. 

One of the key factors is a stark decline in the number of subscribers at Disney+ – its streaming service, which lost $512 million last quarter. The slump brought total streaming losses since 2019, when Disney+ was launched, to over $11 billion.

According to the quarterly report, Disney+ lost around 11.7 million global subscribers in the three months that ended July 1, dropping to 146.1 million. 

In addition, Disney has been dealing with declining foot traffic at its theme parks, launched numerous money-losing movies, and entered a legal beef with Florida governor and US presidential candidate Ron DeSantis.

Naturally, these challenges have been reflected in Disney’s financial performance, with the company’s revenue growing just 6% during the first nine months of fiscal 2023. Meanwhile, the net income for the same period sat at $2.7 billion, down 17% year-over-year. 

Disney stock price analysis

Consequently, Disney investors turned bearish.

The company’s stock fell more than 1.2% in the past week, and over 3.3% in the month.

DIS 1-month price chart. Source: Finbold

Year-to-date, DIS is down nearly 11%, losing around $16 billion in market cap during that period, according to TradingView data. 

At $79.32, the stock is now sitting just above a 3.5-year support located around $79 – an area the stock must uphold to avoid a new record-breaking slump, with the next support located between $76.3 – $76.8 – a level not seen since April 2014. 

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