Why Can't Disney Stock Stay Above $100?
It's a round number that just doesn't seem to fade in Walt Disney's (NYSE: DIS) rearview mirror. Shares of the media giant closed below $100 on Tuesday, the first time in six weeks that it has buckled below a triple-digit price tag at the end of a trading day.
Round milestones are inconsequential in terms of valuation, but they're still ghosts that haunt the House of Mouse like its own Haunted Mansion attraction. You know, the classic dark ride through a manor that features 999 happy haunts -- but there's room for 1,000? Making matters worse, the stock hit an all-time high two years ago when it briefly peaked above $200. How can Disney be half as valuable now under Bob Iger than it was a year into Bob Chapek's tenure?
Disney stock opened just above $100 the day after the company announced that Iger would be back as CEO. How can it be trading lower now? In a little more than three months, he has announced billions in cost savings that should turn Disney+ profitable by the end of next year, promised to give Disney's creative team more control in their art, and made theme park enthusiasts smile again.
Source Fool.com
