Disney shares plunge 2 per cent after surprise CEO change

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Disney shares plunge 2 per cent after surprise CEO change

LA-based American multinational mass media and entertainment conglomerate, the Walt Disney Company had flabbergasted the media industry on Wednesday, the 26th of February 2020, by replacing its Chief Executive Bob Iger what analysts called a move that could work for them or could work against them, as questions raised over the experience level of Bob Iger’s successor Bob Chapek in the entertainment industry.

Amid such uncertainty, shares’ prices of Walt Disney Co. took a nosedive of as much as 3.82 per cent to $123.36 per share on Wednesday (February 26th) Wall St. round off, while in the after-marker trading, Wall Disney Co.

stocks fell 0.32 per cent to $123.00 per share. Nonetheless, there had been a mixed reaction among the Wall St. analysts regarding the Walt Disney Co. move, as casting scepticism on Bob Chapek’s experience level, a Needham analyst Laura Martin said following the announcement on Wednesday (February 26th), “Bob Chapek has less (content experience), having spent his Disney career in distribution of content and/or the physical world of parks, retail, and consumer products (ie, minimal storytelling, despite the fact that even he says that storytelling is at the center of Disney’s value proposition).

" Meanwhile, voicing a cautious optimism over the change in executive level that caught NYSE-listed Walt Disney Co. shares’ off-guarded on Wednesday (February 26th) market, Cowen and Company analysts wrote in a client note, “The move takes CEO succession uncertainty off the table; we expect the markets to digest this news and ultimately give Chapek the benefit of the doubt as the new CEO. ”