Disney has been in flux since Bob Iger left as CEO. In a shock on Sunday night, Disney decided to part ways with CEO Bob Chapek and rehired Bob Iger as CEO.
Bob Chapek was named Chief Executive Officer in February 2020, and at that time, no one knew how Covid would affect businesses. As of Friday, November 9th, Disney stock had dropped down 41%, having a 52-week low.
After being in charge for 11 months and announcing significant cost-cutting measures, Disney has parted ways with Bob Chapek. Now Bob Iger is back for at least two years to find a new CEO to run Disney.
Bob Chapek has yet to do much to increase the Disney brand or enhance its products. He has stated to bring in cuts and increase the Disney Plus prices above those of NBC and Paramount+. There was also the bad look it took when nothing was said about the “Don't Say Gay.” in Florida and the payment to Scarlet Johansen for Black Widow.
The Disney board needed to act fast and bring Disney back to the times under Iger. Now Iger, who saved Disney from Michael Eisner, has a chance to get it back and find a new successor as CEO.
Bob Iger's Effect on Disney
For those that don't know much about Bob Iger, he is the man that bought Pixar from Steve Jobs, brought Marvel under the Disney umbrella, and acquired Lucus Films and 20th Century Fox.
Roy E. Disney helped to bring Bob Iger in as a part of his campaign to “Save Disney.” Since the moment he took over, he has been making moves to make Disney a powerhouse company.
Since taking over as CEO in 2005, Disney saw a market capitalization increase from $48 Billion to $257 Billion. Iger was instrumental in bringing Disney movies and shows more accessible to people through Hulu and Disney Plus, creating an even larger audience for Disney content.
Will It Be a Good Time To Buy Disney Shares?
With anything investment-wise, it is hard to see what the future holds. We can see how the past looks and determine if something has value.
With Bob Iger in charge for at least two more years, and Disney with a low price that has dropped 40%, it can be a good buy. If you believe in the company, the content it is creating, its services, and even its parks' entertainment value, then it could be a good buy for you.
Disney has grown with Marvel, Star Wars, and Fox over the years. If it goes through buying out Comcast's share of Hulu, it will be set to dominate the future of streaming.
Disney can also be bought when you buy index funds or an ETF that tracks the S&P 500. Yes, it is not a full share, but other companies provide diversification in case of falling prices. There are numerous ways to have a piece of the action.
Disney wants to do better for its brand and investors. Bringing in Bob Iger is the key to righting the ship. No one could predict that Iger would be brought back, but as the news spread, Disney's stock price rose in the premarket. Is it a good time to buy Disney? Should you buy some of their stock?
These are all excellent questions. Do some research and find what is best for you.
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I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.