Morgan Stanley executive’s Disney stock purchase may provide insight for investors

A notable move was made recently when James Gorman, the executive chair of Morgan Stanley (NYSE: MS) and a newly appointed board member of Walt Disney (NYSE: DIS), acquired over $2 million worth of Disney stock on May 8th. This substantial insider purchase, the first for Disney this year, has garnered significant attention as the company navigates shifting consumer preferences and fierce competition in the streaming sector.

Gorman’s purchase closely followed Disney’s May 7th earnings report, which, despite showcasing the company’s first profitable quarter in its streaming business, fell short of revenue expectations and led to a stock sell-off. This development is crucial amid the intense “streaming wars” with major competitors like Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). According to a PwC study, the global streaming market is projected to reach $75.5 billion by 2027, growing at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2027.

Disney has remained in the spotlight throughout the year, partly due to its high-profile proxy battle with . Although a streak of quarterly revenue misses has raised concerns, Gorman’s substantial insider purchase is intriguing, given his Wall Street credentials. Should investors follow his lead? Let’s examine Disney’s stock performance.