Disney stock slides as investors lose faith

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STORY: Disney isn’t a fun ride for investors right now.

Shares in the Mickey Mouse firm sank 3.9% on Thursday (August 24).

That took them to their lowest in almost nine years.

And futures markets suggest traders are betting the slump isn’t done yet.

Disney investors are scrutinising a turnaround plan laid out by boss Bob Iger.

He’s promised price hikes for its streaming services, as well as more ads and cost cutting.

In an earnings report earlier this month, Iger said the entertainment company faced a “challenging environment”.

The stock has fallen more than 5% since.

A big shakeup may also lie ahead.

In a July interview, Iger said television, including its stations and cable channels, “may not be core to Disney”.

Reuters sources say the comment sparked a frenzy of speculation among bankers and private equity players over a possible move.

Iger later fuelled the conjecture, when he said Disney might seek a partner for ESPN, its marquee sports brand.

He said film studios, theme parks and streaming would be the core drivers for Disney over the coming years.

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