The Walt Disney Company saw its stock price soar to a nearly two-year high on Monday, Bloomberg reported.
The surge in shares came almost immediately following the news that Disney had tapped former chairman Bob Iger to replace Bob Chapek as its CEO, an unexpected move that sent shockwaves through the entertainment industry.
Disney's shares rose as much as 9.9 percent after Iger was re-hired, which Bloomberg reported was the largest single-day increase for the Mouse House since December 2020. The surge also came following a period of heavy financial woes for Disney, as the company had seen its stock price fall 41 percent in 2022 — a factor that CNBC noted likely contributed to the ousting of Chapek.
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Wall Street responded to the surging shares in a similarly positive manner. Per The Wall Street Journal, financial analysis company MoffettNathanson upgraded its standing on Disney, recommending the stock for the first time since May 2020.
However, even with its stock rising, Disney is still primed to have its worst single-year loss since the 1970s. The re-hiring of Iger, though, is likely to go a long way toward the market regaining confidence in the entertainment giant.
The 71-year-old Iger previously worked at Disney for more than four decades, Bloomberg noted, and spent 15 years as its CEO before retiring in 2021. While he now retakes the reigns at Disney, this move is temporary, as the company announced Iger had agreed to return for two years to help find a permanent replacement.
