Subscribe to Money Magazine
CNN/MoneyWeb
Markets > Stock Spotlight
graphic
Mickey under the microscope
Stock Spotlight: Disney is on a hot streak thanks to a turnaround at ABC. Is the stock still a buy?
December 20, 2004: 9:30 AM EST
By Steve Hargreaves, CNN/Money staff writer

NEW YORK (CNN/Money) - It's been a tumultuous year for The Walt Disney Company...but now it looks like a Hollywood-style happy ending for the House of Mouse.

The year began with cable operator Comcast's surprise takeover bid for Disney (Research) in February, which sent shares of the media giant to their highest level since the summer of 2001.

Over the next few months, the stock price fell as Comcast walked away, a string of films flopped, and the ABC television network's ratings continued to founder.

Dissident shareholders were calling for beleaguered chief executive officer Michael Eisner to resign. Eisner gave up his role as chairman after a contentious shareholder meeting in March.

But things began to brighten. In August, Disney reported that fiscal third-quarter earnings increased 21 percent, beating expectations. In September, Eisner announced he would retire as CEO in 2006.

Fall arrived and, to everyone's surprise, ABC found itself with a number of hit programs, most notably the salacious pop culture phenomenon "Desperate Housewives." In November, Disney said its fourth-quarter earnings jumped 24 percent, thanks largely to its highly profitable ESPN cable sports network and theme parks division.

And the movie business, smarting from bombs earlier in the year, bounced back in November with two big box-office hits: "The Incredibles," Disney's latest animated film with Pixar, and "National Treasure."

As a result of this recent success, shares are up 33 percent since mid-August and trade just 3 percent below the peak price they hit after Comcast announced its takeover bid. So is it too late to cash in on the Mouse's turnaround? Find out in our Stock Spotlight»  Top of page




  More on MARKETS
Why it's time for investors to go on defense
Premarket: 7 things to know before the bell
Barnes & Noble stock soars 20% as it explores a sale
  TODAY'S TOP STORIES
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.