Disney continues to be in a rut. It has been involved in controversies that have been all over the news on an almost daily basis, which has been affecting the company's financials. According to Reuters, the company's share price declined 3.9% on Thursday to $82.47, the lowest level since Oct. 16, 2014.
According to Reuters, the cause of this decline is due to the prediction by the shareholders that the company could face a hard fall in the coming months.
The reason for this huge decline, according to experts, could be in the recovery plan that CEO Bob Iger has implemented since he returned to the company. Moves such as the increasing the price of Disney Plus and the nearly $1 billion in losses in its latest film releases caused the company's stock to tank. According to Iger, since he announced his new measures on Aug. 9, shares on the stock market have only decreased, dropping 5% on the stock market in the time since.
The "challenging environment" Disney faces
These results have made Iger realize that the company faces a "challenging environment" in the short term that has been aggravated by the double strike in Hollywood. This has caused huge delays in the new shows and films with which the company had hoped to recover some of its losses.
However, it's not all the company's fault. Another cause of the decline in share price is the caution that investors have shown that increased when the U.S. Federal Reserve said it detected weakness in the broader market. This has led to a wave of caution among shareholders leading up to Fed Chairman Jerome Powell's speech this Friday to discuss the country's economic situation.
