Investor Ross Gerber renewed his call for a major shake-up at The Walt Disney Co. (NYSE:DIS) on Tuesday, saying shareholders have “suffered too long” as the stock significantly lagged the S&P 500 over the past 11 years.
Gerber Says Disney Should Be Broken Up
Responding to a post on X by Creative Planning‘s Charlie Bilello showing Disney lost 10.93% over the past 11 years while the State Street SPDR S&P 500 ETF Trust (NYSE:SPY) gained 320.1%, Gerber said “It’s time for real change at Disney.”
Gerber, who is also the CEO of Gerber Kawasaki, added that Disney’s individual businesses are worth more separately than together, saying shareholders have suffered too long.
“Break up the mouse house or sell it,” Gerber added.
Investor Has Pushed For Bigger Changes
Gerber has repeatedly criticized Disney’s strategy in recent days.
On Sunday, he said Apple Inc (NASDAQ:AAPL) should either acquire Disney to become “the ultimate consumer company” or exit the entertainment business altogether.
Gerber also said Disney management had failed to unlock the value of its assets and argued shareholders were “sick of the dawdling” while executives continued to receive large compensation packages.
Over the past five years, Disney has lost more than 45% of its market value. The stock is down 20.58% over the past year and has fallen 14.05% so far this year.
Analysts Also See Untapped Value
Last week, Wells Fargo analyst Steven Cahall said Disney could unlock roughly 40% upside by exiting the streaming business and returning to its legacy model of producing and licensing content instead of distributing it through Disney+.
The bank maintained its Overweight rating on Disney despite lowering its price target, saying the company’s intellectual property and licensing business could generate more consistent long-term value.
Price Action: DIS closed 0.21% lower on Tuesday at $96.14 and edged 0.07% higher in extended trading.
Benzinga edge rankings indicate DIS has a Momentum score in the 13th percentile and a Growth score in the 74th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Mino Surkala via Shutterstock
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