'Disney is like desperate to the point of Steve Jobs syndrome to ensure the success of the company.'
The return of Bob Iger who once held the portfolio of Chairman and Chief Executive Officer (CEO) of Walt Disney Co increased the confidence of investors to buy shares of the United States (US) entertainment conglomerate company.
Citing an official statement from Disney, Iger agreed to become CEO for the next 2 years after announcing his retirement in 2020.
That streak saw Disney shares soar yesterday for its best daily close in 2 years and the momentum continued today with a 6.30% gain at $97.58.
Comment analyst Neil Wilson of Markets.com said Iger's presence is the company's secret weapon to compete with Netflix and what is needed to restore Disney's share price.
Previously, the CEO seat was filled by Bob Chapek since February 2020 and under his leadership, Disney shares have declined 40% so far this year while on a year-to-date basis in the Dow Jones Industrial there has been a 7% contraction in value.
Overall Disney's performance under Chapek suffered a 1/3 loss and its stock hit a 20-year low following the release of the company's 4th quarter corporate report under Chapek.
Back to Iger, his main challenge will be to revive the Disney+ streaming business which suffered a loss of $1.5 billion in the previous quarter, double the loss from last year.
In addition, Iger needs to ensure that the Disney+ service succeeds in becoming a profit leader based on the company's set fiscal 2024 plan.
Through Iger's memo to employees, he believes that the service will be the best streaming app in partnership with Netflix.
