Disney Stock Struggles Amid Slow Growth and Rising Streaming Costs
Walt Disney's (DIS) stock has been struggling over the past year, losing 10.2% compared to the S&P 500's 16.0% return. The company's growth has slowed down, with sales growing only 4.6% over a full year, below the 5.0% of the previous year.
Disney's decision to raise the monthly price of its streaming services, Disney+ and Hulu, by $2.50 may be seen as an attempt to boost revenue. However, this is not without risks, as subscribers may choose to leave due to increased costs.
The company has raised streaming prices twice in a year, with standalone plans now costing $21.49 per month. This is the sixth straight year of price increases for Disney+, which may indicate that investors expect more from the company's growth.