Disney falls further, AMC drops as market awaits stock conversion

Disney (DIS) is on track to close at its lowest level since 2014, excluding pandemic lows. Yahoo Finance Markets Reporter Jared Blikre breaks down Disney's market cap, which is down $16 billion since Bob Iger's return as Disney CEO, as well as AMC (AMC, APE) stock falling as Wall Street awaits its stock conversion on Friday.

Video transcript

SEANA SMITH: Disney, one of the worst performers in the Dow today. You're looking at losses of just about 3.5%. It's on track to close at the lowest level since 2014. Here with a closer look at the big board, Yahoo Finance's Jared Blikre. Jared, there's a heck of a lot of red on your screen up there.

JARED BLIKRE: Yes, there is. This is the Dow. And some of the darkest red is some of the smaller companies now. Boeing down 4.5%. Intel down 4%. Walgreens boots down about 3.5%. But we're talking about Disney today.

Here is the intraday price action. And you can see we are just off the lows here. What caused this calamitous decline here? I'm just going to say it's technicals. We had what was a base here providing support, breached it today.

And we are just heading down. And in fact, if you were to exclude the pandemic lows right here, you'd see we haven't seen these levels since about 2014, 2015. So this is some serious price action here. And for the people who have lauded the return of Bob Iger, maybe it is and will have been a great thing when we look back.

So far, really not panning out because that happened somewhere in here November 20 was the day he took the helm back from Bob-- what was the other one? Chapek? Yes, the two Bobs. And now we are $15 billion in market cap below that price.

And just because we're talking about Nvidia so much today, Nvidia by the way, over the last two weeks, is up about one Disney, which is $150 billion. In fact, more than that. And then you take a look at some of its peers here. Let me get our streaming heatmap up. And you can see it's a sea of red.

AT&T up marginally because of its-- well, not because of, in spite of its streaming business. But for the most part, we're seeing a lot of red on the screen today. Another stock that is on my radar is AMC. So let me get to our meme stocks here. They have had quite the run down. AMC is right here down 25%.

The APE shares are down 17% right here. And let me just show you what has happened this week. And this is all because of that share conversion, where those APE shares are going to be converted into AMC common shares that is seen as a diluting event. But I think the shareholders are now just saying, well, this is a going concern.

This is a going concern problem. The company may not stay in business. 60% down for AMC common shares, 36% down for the AMC APE units. A lot of times before, we were seeing these go in opposite directions, and that is just not the place that we're seeing right now. The convergence is to the downside.

So just getting back to, I guess, one of the overall thesis here today, we're seeing some stocks really just kind of fall out of bed from established positions. I mentioned Walgreens. That's a similar chart to Disney. Really not great if you're not in AI stock today. Just look at Nvidia and then everything else.

SEANA SMITH: Yeah, exactly. We're seeing a lot of red for many of Nvidia's rivals today. All right, Jared, thanks.