Shares of Walt Disney Co. (DIS) have fallen to their lowest level in nine years as investors turn increasingly bearish on the Mouse House.
Disney’s stock fell 4% yesterday (August 24) amid a broad stock market selloff, closing at $82.47 U.S. per share.
That was the stock’s lowest level since October 16, 2014, when the share price stood at $82.47 U.S. Some analysts forecast a further price drop in the coming months.
Investors appear unimpressed with Disney’s turnaround plan under Chief Executive Officer (CEO) Bob Iger, who has announced price hikes across the company’s streaming services and aggressive cost cuts to help boost the business.
Options trading in Disney’s stock has accelerated in recent days, with 321,000 contracts traded on August 24, which is 1.4 times the average daily volume, according to data from analytics firm Trade Alert.
Most options trades involve “put contracts,” which is when traders and investors bet that a share price will decline further in coming weeks and months.
In Disney’s case, investors are betting that the stock will fall below $80 U.S. a share by mid-September.
Disney issued mixed second-quarter financial results on August 9 and the company’s share price has fallen about 5% since then.
The company is also being negatively impacted by a prolonged strike on the part of Hollywood writers and actors.
Disney’s stock is now down 26% over the last five years.