by Ray Keating
Analysis
DisneyBizJournal.com
July 18, 2024
There’s been a good deal of talk about the underperformance of The Walt Disney Company’s stock. Since Disney is a company that seems to get a great deal of criticism – sometimes for good reason and many times without a sound basis – DisneyBizJournal has been overdue in taking a look at the Disney stock over the long haul.
It's standard practice to see how a stock performs compared to the market overall. The following chart comes courtesy of PortfoliosLab.com, and it compares the Disney stock price (DIS) versus the S&P 500 Index (as captured by SPDR S&P 500 ETF (SPY)). By the way, these prices are adjusted for stock splits and dividends.
The chart goes back ten years. From July 2014 to March 2021, Disney’s stock largely went along with the S&P 500. However, since March 2021, the divergence has been stunning, with the market climbing higher and Disney declining. Over this ten-year period, as PortfoliosLab noted, “DIS has underperformed SPY with an annualized return of 2.19%, while SPY has yielded a comparatively higher 12.93% annualized return.”
Over the past five years (see the first chart below from PortfoliosLab.com), the S&P 500 gained 102.8 percent, while Disney declined by 29.5 percent. And over the past year, the S&P was up by 24.1 percent, with Disney experiencing a gain of 12.7 percent (the second chart is below).
Finally, what about stock performance since Bob Iger returned as CEO on November 20, 2022? The S&P has been up 40.5 percent, while Disney’s down by 34 percent.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Keating also own stock in Disney.
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
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Various books by Ray Keating…
• The Pastor Stephen Grant thrillers and mysteries. There are 19 books in the series now.
• The Alliance of Saint Michael novels – Cathedral and Subversion – are at Amazon.
• Order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com.
Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.
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