Thursday, December 30, 2021

Report: Disney Stock Was Dow’s Worst Performer in 2021


Walt Disney stock had the worst performance of the 30 stocks in the Dow Jones Industrial Average this year, down 15% as of Wednesday, as the company struggled to overcome slowing growth in its streaming business and the reopening of its theme parks after pandemic shutdowns, reports Barron's Daily.

Disney reported slower-than-anticipated subscriber growth for Disney+ in November, but maintained its target of up to 260 million subscribers by the end of fiscal 2024, up from 118 million in September.

KeyBanc Capital Markets analyst Brandon Nispel wrote earlier in December that Disney’s streaming position “is likely to drive multiple years of rapid growth,” with profitability improving as its theme parks and film businesses recover.

Disney World said Tuesday it will reopen its Typhoon Lagoon Water Park on Sunday after a two-year shutdown. Disneyland and Disney California Adventure reopened to non-California visitors in June.

Being a Dog of the Dow can have its advantages, according to Bespoke Investment Group. The Dow’s biggest loser for the past 25 years gained an average of 12% the next year, compared with a 6.7% gain for the biggest winner. More recently, the biggest loser has gained the next year only three of the past eight years.

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