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Wall Street Love Sends Disney Stock Soaring; Activist Investor Calls It “Déjà Vu All Over Again”
Disney share shot up after an earnings beat, positive outlook, deals with Epic Games and Taylor Swift. Activist investor Nelson Peltz shrugs it off.
“In a little over a year since returning to the company as CEO, Bob Iger’s actions are already having an impact,” said BofA analyst Jessica Reif Erlich, praising yesterday’s “bold, decisive steps to address the evolving landscape” and raised her price target on the stock (which is now trading at $111) from $110 to $130. Bold steps include a hefty $1.5 billion investment in Epic Games with plans to develop a Fortnite-adjacent Disney World, and a deal for Taylor Swift’s Eras Tour concert film to come to Disney+, both announced yeterday. Given CEO Bob Iger’s honest observation upon his return that “we got a little bit maybe intoxicated by our own sub growth”, the company sounds like they will center their primary communication mission on building the case for Disney to be the #2 global streaming player in terms of profitability and scale,” the firm said.
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