Part 9/11:
Financially, Disney’s stock is considered overvalued given growth rates. Its price-to-earnings ratio surpassed typical benchmarks, reflecting investor optimism that may not be justified by current operations. Despite some cost-cutting under Iger, the company continues to face mounting challenges—declining linear viewership, high content costs, and a saturated streaming market.
Wall Street’s focus on short-term metrics, like subscriber numbers, obscures long-term operational sustainability. Until Disney adopts a clearer, more disciplined strategy—reducing spending, improving content pipelines, and restoring profitability—the stock’s valuation remains speculative.