In weekend upset, Disney (DIS) switches Bobs

• Disney has replaced CEO Bob Chapek with former CEO Bob Iger.
• DIS stock soars 9.5% in Monday's premarket.
• Bob Iger has agreed to become CEO for two years and to look for a replacement.

Seemingly out of nowhere, Disney (DIS) decided to switch horses midstream over the weekend by reinstating long-time CEO Bob Iger. CEO Bob Chapek is out of a job less than three years into his tenure. Disney stock has soared 9.5% on the news to $100.48.

Disney stock news

Disney's statement in regard to the firing of Chapek did not shed much light on their reasoning: "We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic."

Instead, Disney's press statement simply focused on Bob Iger's illustrous 15-year tenure as CEO.

“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” said Chairman Susan Arnold. “Mr. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide—all of which will allow for a seamless transition of leadership."

Iger has agreed with the board of directors to a two-year term as CEO, in which time he will help the board select a new CEO. Iger was the CEO from 2005 to February 2020, ending his successful run just before covid cases surged and the pandemic stole all the headlines.

Chapek's short tenure is unusual since Disney is quite famous for having long-serving CEOs. Chapek was only the seventh CEO in the company's nearly 100-year history and had by far the shortest tenure. During his time as CEO, Disney became the largest video streaming service in the world by subscriptions through its Disney+, Hulu and ESPN+ offerings.

However, the market did not love Disney's plans to spend $30 billion or more on original content to compete in the competitive streaming wars. The company's streaming segment was losing more than $1 billion a quarter and dragging down profitability. The stock is down 41% year to date.

Disney stock forecast

Disney stock has already surpassed the 50-day moving average in the premarket. The market sure loves the return of Bob Iger. Next up is the 100-day moving average at $103.82. Above that level, DIS stock would likely see even more bulls rush in. This could possibly see Disney stock hitting the resistance level of $107.43 reached on September 21 and November 1. Beyond there the $117.50 resistance line from August looms large.

DIS 1-day chart