DIS Shareholders and Stock Info ONLY

[PolymerSkywalker]

https://www.skynews.com.au/business...k/news-story/7e8c0b3efec74bfc627271b4de666bfc

 

[middlechild]

https://www.skynews.com.au/business...k/news-story/7e8c0b3efec74bfc627271b4de666bfc

Headlines for those like me that do not like to click blind links:

Disney stock downgraded over fears of stalling growth in its streaming brands, lower visitor numbers at its theme park​

KeyBanc analysts lowered Disney’s rating from overweight to sector weight Wednesday, causing its stock price to fall.

 

[Jrb1979]

Headlines for those like me that do not like to click blind links:

Disney stock downgraded over fears of stalling growth in its streaming brands, lower visitor numbers at its theme park​

KeyBanc analysts lowered Disney’s rating from overweight to sector weight Wednesday, causing its stock price to fall.

Unfortunately it's probably going to get worse before it gets better. Yesterday was the quietest July 4th in a decade at the parks.

 

[PolymerSkywalker]

Disney always rebounds after a bad stretch though, and I have faith they will this time also.

 

[BrianL]

Might be a good time to buy.

 

[PolymerSkywalker]

Might be a good time to buy.

Maybe so, but I want to see a few signs that they plan to return to form first. I will know it when I see it, and I haven't seen it yet. They have to return to making the content that the average moderate middle class family wants to consume, and they haven't done that yet.

 

[BrianL]

Maybe so, but I want to see a few signs that they plan to return to form first. I will know it when I see it, and I haven't seen it yet. They have to return to making the content that the average moderate middle class family wants to consume, and they haven't done that yet.

Well, the trick is that if you see those signs, then everyone else will too and the stock will start going up - that's the game!

 

[Jrb1979]

Disney always rebounds after a bad stretch though, and I have faith they will this time also.

Iger has to go for that to happen. They need to invest in the parks and make it affordable again for most families. WDW is not a luxury vacation and shouldn't be priced like it. It needs to go back to being a higher end vacation.

 

[PolymerSkywalker]

Well, the trick is that if you see those signs, then everyone else will too and the stock will start going up - that's the game!

Yep, I agree.

I will say all the recent high-profile firings and massive layoffs, suggest Iger is trying to right the ship. She is a big ole ship to turnaround though!

However, it's not like all this crappy content can be blamed on Chapek though, as most of it was greenlit under Iger before he left.

 

[PolymerSkywalker]

ESPN taking a massive talent cut this weekend with high profile firings also suggest they are trying to get this profitability piece figured out.

 

[New Mouse]

ESPN taking a massive talent cut this weekend with high profile firings also suggest they are trying to get this profitability piece figured out.

Or they are shuffling the deck chairs on the titanic. ESPN should have been jettisoned years ago when it had some value.

 

[clarker99]

Based on the FY23 6month earning report:
https://thewaltdisneycompany.com/app/uploads/2023/05/q2-fy23-earnings.pdf

Disney FY23 is projecting revenue of over $90b (a DIS record) and an Operating Income (OI) of $12.6B .

Parks, Experiences and Products is on pace for record revenue, OI and margins.

Direct-to-consumer (DTC) streaming is pretty much the elephant in the room. Projecting a $3.5B loss. After a $4B loss in FY22.

To offset the DTC losses, we have seen $5.5B in cuts, content spend for DIS+ being significantly reduced and licensing is on its way back.

On the macro, DIS is fine.

 

[RivShore]

Iger has to go for that to happen. They need to invest in the parks and make it affordable again for most families. WDW is not a luxury vacation and shouldn't be priced like it. It needs to go back to being a higher end vacation.

We all have short memories and forget that during all those non-stop price increases that slowly turned WDW into a "luxury "vacation, the people kept coming and coming and coming. The parks still became ridiculously crowded with the price increases and really, what company would not increase costs as demand goes thru the roof?

Now, as demand falls, prices will follow, oh the wonders of the free market!

 

[wabbott]

Based on the FY23 6month earning report:
https://thewaltdisneycompany.com/app/uploads/2023/05/q2-fy23-earnings.pdf

Disney FY23 is projecting revenue of over $90b (a DIS record) and an Operating Income (OI) of $12.6B .

Parks, Experiences and Products is on pace for record revenue, OI and margins.

Direct-to-consumer (DTC) streaming is pretty much the elephant in the room. Projecting a $3.5B loss. After a $4B loss in FY22.

To offset the DTC losses, we have seen $5.5B in cuts, content spend for DIS+ being significantly reduced and licensing is on its way back.

On the macro, DIS is fine.

At the risk of being repetitive, yes, this is all good if you don't mind neglecting your most valuable block of capital (parks and experiences) to keep the other division propped up. It CANNOT go on like this.

In my opinion.

 

[clarker99]

At the risk of being repetitive, yes, this is all good if you don't mind neglecting your most valuable block of capital (parks and experiences) to keep the other division propped up. It CANNOT go on like this.

In my opinion.

DMED is being propped up by Linear Networks. DTC and Studios underwater while linear chugs along. In fact, Linear profits propped up the entire company during the pandemic.

I am not seeing where the Parks division was affected by streaming? Only 2 years of Covid caused Parks segment an issue.

 

[RivShore]

https://www.skynews.com.au/business...k/news-story/7e8c0b3efec74bfc627271b4de666bfc

None of this is new and should already be priced into the stock. If your a long term investor, it's probably a decent buying opportunity here and if you already own the stock, it's probably a hold until we start seeing meaningful moves upward. Way too many open questions to move the stock anytime soon though - need the new CEO named, need studios to get their act together, need DTC to turn consistently profitable. That formally retired CEO has a lot on his plate.

 

[Jrb1979]

We all have short memories and forget that during all those non-stop price increases that slowly turned WDW into a "luxury "vacation, the people kept coming and coming and coming. The parks still became ridiculously crowded with the price increases and really, what company would not increase costs as demand goes thru the roof?

Now, as demand falls, prices will follow, oh the wonders of the free market!

Prices and fall will never happen at Disney. They will just do discounts

 

[RivShore]

Prices and fall will never happen at Disney. They will just do discounts

Obviously. The net result is the same, consumers will pay less.

 

[New Mouse]

The parks still became ridiculously crowded with the price increases and really, what company would not increase costs as demand goes thru the roof?

Now, as demand falls, prices will follow, oh the wonders of the free market!

The smart ones who don't want to disenfranchise their loyal core. If all you do as a CEO is chase profits, you will run your business into the ground.

 

[RivShore]

The smart ones who don't want to disenfranchise their loyal core. If all you do as a CEO is chase profits, you will run your business into the ground.

There is some middle ground that Disney could have better gotten to for sure but doing nothing, by keeping prices the same and just letting in more people, was not an option because that just degrades the experience for everyone.