Avatar: The Way of Water
Credit: Disney Company
shares of disney dropped on monday after one weaker than expectedd opening box office weekend for James Cameron’s “Avatar: The Way of Water”.
Disney shares fell more than 4% to close at $85.78 after hitting a 52-week low. The company has seen its stock fall by more than 40% in the last one year.
Industry analysts see the long-awaited “Avatar” sequel as a box office winner for Disney and the holiday season as a make-or-break period for the film.
The film grossed $134 million at the domestic box office in its opening weekend, falling short Analyst Expectations of $175 million and Disney’s own forecast of between $135 million and $150 million.
Still, box office analysts aren’t worried just yet. Internationally, “Way of Water” grossed $300.5 million, bringing its total opening weekend count to $434.5 million. The original film, released in 2009, earned only $77 million in its first weekend but went on to become the highest-grossing film of all time.
In the background, Disney has been facing challenges since the start of the pandemic, when movie theaters and theme parks were closed for months. With the exception of hits like Paramount Global“Top Gun: Maverick.” Disney theme-park goers are also grappling with rising prices.
While Disney’s stock soared during the pandemic when former CEO Bob Chapek helped weather the storm — reaching above $200 per share at one point in 2021 — it has since fallen.
Chapek and Disney have faced scrutiny in recent months, particularly over the company’s performance. during most of most recent quarterly earnings In the report, Disney fell short of profit and key revenue segment expectations, with both its media and parks divisions missing estimates. At the time, Chapek warned that Disney’s streaming business could still see growth in the future.
Shortly after, Disney’s Chapek was dropped by the board and reinstated Bob Iger as the company’s CEO. Soon after being reinstated, Iger released some of Chapek’s top lieutenants and said the company would focus on them. Restructuring of its media division.