Disney Shares Tank By 3.9% To Close At Lowest Levels In Nine Years; Here’s Why

Share price of Walt Disney declined by 3.9% on Thursday to close at $82.47, which is said to be the lowest level in nine years or since October 16, 2014. Investors, as quoted by Reuters, the shares are expected to further fall in the next few months.

The decline in share prices of Walt Disney comes after investors examine the company’s turnaround plan after chief Bob Iger earlier this month promised a mix of price hikes across its streaming properties, more ads and cost cuts to lift the business, according to a report by Reuters.

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Disney shares have fallen by 5% after Iger said, in the company's earnings report on August 9, that the entertainment industry is facing a ‘challenging environment’ in the near future.

According to data by Trade Alert, which is an option analytics firm, around 321,000 Disney options contracts were traded, which was 1.4 times the average daily volume, on Thursday.

The shares of Walt Disney closed at $82.47, down by 3.91% on Thursday’s trading session on NYSE. Despite the falling of the share price, analysts believe that the stock is still comparatively expensive, as compared to other media stocks in the US market.

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Disney’s stock is down 59% from its all-time closing high of $201.91 that was set March 8, 2021.

Meanwhile, Disney is currently having early talks with Amazon.com on the streaming version of ESPN it is developing, while possibly also taking a minority stake in the sports network, according to media reports.