What's Going On With Disney Stock Wednesday?
Portfolio Pulse from Anusuya Lahiri
Walt Disney Co (NYSE:DIS) stock is up as ValueAct has been accumulating shares, now one of its largest shareholders. ValueAct, with a history of enhancing profitability at companies like Salesforce (NYSE:CRM) and Microsoft (NASDAQ:MSFT), sees potential for similar improvements in Disney. They suggest revenue increases through bundling, pricing tiers, and advertising, which could boost Disney's EBIT. The return of Bob Iger and the current proxy fight with Nelson Peltz and Trian Partners also present opportunities for ValueAct's involvement.
November 15, 2023 | 2:52 pm
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NEUTRAL IMPACT
Salesforce (CRM) is mentioned as a company where ValueAct has previously enhanced profitability, which may reflect positively on ValueAct's potential impact on Disney.
While Salesforce is mentioned as an example of ValueAct's successful past involvement, there is no direct news impacting Salesforce's stock. However, the mention may indirectly reflect positively on ValueAct's reputation and, by extension, on companies they are currently investing in.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Microsoft (MSFT) is referenced as another example of ValueAct's successful influence, potentially lending credibility to ValueAct's current involvement with Disney.
Microsoft is cited as a case of ValueAct's positive impact, which could indirectly boost investor confidence in ValueAct's current endeavors with Disney. However, there is no immediate news affecting Microsoft's stock directly.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
ValueAct's stake in Disney and its track record suggest potential for operational improvements and increased profitability, which could lead to a rise in Disney's stock price.
ValueAct's involvement in Disney is significant due to their history of improving company profitability. Their approach to increasing revenue and EBIT, along with the strategic opportunities presented by Bob Iger's return and the proxy fight, are likely to be viewed positively by investors, leading to a potential short-term increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100