Disney (DIS) investors are bound to be unhappy, as the stock has lost over a fifth of its market cap over the last five years. Despite CEO Bob Iger’s turnaround efforts, the stock has been out of favor with markets. Iger, who returned from retirement to lead Disney again in November 2022, led a variety of initiatives to revive the company. While these have shown some results, the stock has underperformed during his tenure.
At the same time, streaming rival Netflix (NFLX) – which I argued in a previous article deserves a place in “Magnificent 7” – has been hitting new highs. Netflix’s market cap is now over twice Disney’s, thanks to the divergent price actions of the two stocks.
