After less than three years on the job, Walt Disney (NYSE: DIS) CEO Bob Chapek is stepping down, and is being replaced by his predecessor, Bob Iger. The switch is effective immediately, according to the official announcement posted late Sunday evening. Beaten-down Disney shares are rallying on the news that Iger inked a two-year deal to lead Walt Disney out of its rut.

And, it's an understandable response. Although Chapek took the helm at a tricky time -- right before a pandemic that rattled the entire entertainment industry -- investors have become increasingly frustrated with his leadership. As of Friday, Disney shares were down more than 50% from their early 2021 high thanks to lackluster results. Its streaming subscriber growth is stalling, and earnings remain well below pre-COVID-19 levels. Putting a proven chief like Iger back in charge seems like a step in the right direction.

As the old adage goes, however, things aren't always as they seem.

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Source Fool.com