Disney stocks have hit surprising numbers, but not necessarily in a good way.
We’ve been watching Disney’s stock values and the entire situation with the Company carefully over the past several months. From changes in leadership, to the Company’s involvement in a number of political situations, the repeal of the Reedy Creek Improvement District, and impressive revenue numbers in theme parks — Disney has seen a lot of change and development over the last few months. And stock values have changed along with it. But today, the stock hit a surprising low.
Back in March 0f 2021, the Disney stock hit an all-time high of nearly $200 per share. However, things have changed drastically since then.
We recently reported that, as of April 22nd, 2022, the stock fell to around $118-$117. It then continued to fall. In mid-May 2022, it fell to around $108. Now, the stock value has fallen even further. As of June 13th, the stock was trading at around $95.71.
The last time Disney’s stock saw numbers this low (within recent history) was around March of 2020, a time at which many of its theme parks were closed.
In recent years, the stock’s lowest value was around $85.98 back in March of 2020.
If you look at the stock’s history over many more years, you can see that for many years it did trade at low levels. But these most recent numbers are rather shocking given the high number at which the stock was valued just last year.
There may be a multitude of reasons why this drop has taken place, one of which is the market situation in general. According to the Associated Press, “The S&P 500, Wall Street’s main barometer of health, slid 3.9% Monday to 3,749. That’s nearly 22% below the high set on Jan. 3.”
Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. These numbers point toward Wall Street being in the claws of a “bear market,” which means an index or even an individual stock “has fallen 20% or more from a recent high for a sustained period of time.”
According to the Associated Press, bear markets (on average) have taken about 13 months to go from “peak to trough and 27 months to get back to break-even since World War II.” Investors will usually look for a 20% gain from a particular low point, along with “sustained gains over at least a six-month period” to signal that the bear market has ended. Back in 2020, it took less than 3 weeks for stocks to rise 20% from the low they hit in March of 2020. High inflation, changes in interest rates, and more are all playing a role in how things are going.
This is, of course, a developing situation, as stock values can change quickly. We’ll continue to look for more updates.
As always, stay tuned to DFB for the latest.
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What do you think about this situation? Let us know in the comments.