Is Disney going broke

[0FF TO NEVERLAND]

If Disneys going broke, I’m Miles Davis.

 

[New Mouse]

Not that I disagree with the bigger point, but coke I believe has outsourced almost all their operations. It’s largely a brand and marketing company now.

Joseph

Disney would be completely content to offload all the labor and retirement costs associated with the parks.

 

[jdrasin]

Disney would be completely content to offload all the labor and retirement costs associated with the parks.

Isn’t that kinda what happened in Japan? They basically licensed “Disney”.

 

[hmansionlover]

I worked on wall street for 22 years. The one thing I have told people more than any other thing is that the current price of any given stock and the given activity on any given exchange on any given day is: market conditions are usually never really an indicator of how healthy or unhealthy a given company is. As previous poster stated, the stock market is no longer just a place where you can purchase piece of a company and enjoy being paid part of the quarterly earnings in the form of dividends as well as any growth in the overall value of the company, it has been about gambling for decades. Hence the birth of hedge funds (pure gambling) Not to mention the fact that most brokers I dealt with or met were degenerate gamblers.

 

[lovethesun12]

This article reminds me of my homophobic relative posting a meme of how WDW were going bankrupt and had no visitors last Easter.

Meanwhile on the day it was posted you couldn't even purchase a ticket at a park since they were at capacity and the meme included a picture of Iger, not Chapek .

If you have an agenda to push, you will find evidence to support it.

 

[Upatnoon]

This article reminds me of my homophobic relative posting a meme of how WDW were going bankrupt and had no visitors last Easter.

Meanwhile on the day it was posted you couldn't even purchase a ticket at a park since they were at capacity and the meme included a picture of Iger, not Chapek .

If you have an agenda to push, you will find evidence to support it.

Disney released its 2nd quarter earnings today and made $3.6 billion in profits on $21.5 billion in revenue.

Thus any rumors about them going broke appear to be unfounded.

 

[TsWade2]

Disney released its 2nd quarter earnings today and made $3.6 billion in profits on $21.5 billion in revenue.

Thus any rumors about them going broke appear to be unfounded.

Thank you for telling us. We appreciate the good and fine news.

 

[RivShore]

maybe reality?

The Walt Disney Co. is the worst performing stock in the Dow Jones Industrial Average for the past year, plummeting 31 percent in the last 12 months.

Well, what say you after this quarters earnings?

 

[Aluminum Falcon]

So that about does it for Chapek, he ain’t goin nowhere anytime soon. So all that conjecture can get flushed right down the toilet

 

[RivShore]

So that about does it for Chapek, he ain’t goin nowhere anytime soon. So all that conjecture can get flushed right down the toilet

Yep. We should have known much improved results were on the way when the board gave him another three years (in the midst of all the controversies).

 

[Aluminum Falcon]

Yep. We should have known much improved results were on the way when the board gave him another three years (in the midst of all the controversies).

I mean, he's strung 3 solid quarters together now. Fans may not like it, but he's been really positive for the company so far. That being said he's definitely had some growing pains, but nothing that looks to have any real long term impacts on the company (especially since it looks as though Reedy Creek is going to be left alone)

 

[Jrb1979]

I mean, he's strung 3 solid quarters together now. Fans may not like it, but he's been really positive for the company so far. That being said he's definitely had some growing pains, but nothing that looks to have any real long term impacts on the company (especially since it looks as though Reedy Creek is going to be left alone)

For the company yes it's been a positive. For the unfavorable (AP holder) and many hardcore Disney fans he has been a negative

 

[jujubiee4]

All I see ahead are continued price increases.......and RIGHT NOW people are paying.

However the future will be interesting.

 

[Aluminum Falcon]

For the company yes it's been a positive. For the unfavorable (AP holder) and many hardcore Disney fans he has been a negative

It’s definitely been more expensive

 

[lowlight]

All I see ahead are continued price increases.......and RIGHT NOW people are paying.

However the future will be interesting.

Agreed. People are paying, but household debt is at an all time high. Delinquencies, and prime (not just sub prime) repo's are exploding. I imagine a portion of trips are being put on credit cards. That credit card debt is going to be a powder keg.

 

[Aluminum Falcon]

Agreed. People are paying, but household debt is at an all time high. Delinquencies, and prime (not just sub prime) repo's are exploding. I imagine a portion of trips are being put on credit cards. That credit card debt is going to be a powder keg.

I think that's a bit of an overstatement, delinquencies are raising, but they have only raised back to pre pandemic level, which were at the time historically low. Needless to say that this period in economics is extremely bizarre, so who knows what's next.

 

[RivShore]

Agreed. People are paying, but household debt is at an all time high. Delinquencies, and prime (not just sub prime) repo's are exploding. I imagine a portion of trips are being put on credit cards. That credit card debt is going to be a powder keg.

Not really doom and gloom on the debt front, for now anyway:

https://www.cnbc.com/2022/08/02/hou...d-rates-rise.html?&qsearchterm=household debt

Despite the rising debt and inflation levels and higher interest rates, delinquency rates remained relatively benign.

“Although debt balances are growing rapidly, households in general have weathered the pandemic remarkably well, due in no small part to the expansive programs put in place to support them,” the Fed blog post said. “Further, household debt is held overwhelmingly by higher-score borrowers, even more so now than it has been in the history of our data.”

Through June, some 2.7% of outstanding debt was in delinquency, nearly 2 percentage points lower than the first quarter of 2020 as the nation was entering the Covid pandemic.

Fed economists noted that delinquency rates were nudging higher for subprime borrowers at the lower end of the credit scale.

 

[lowlight]

Not really doom and gloom on the debt front, for now anyway:

https://www.cnbc.com/2022/08/02/household-debt-tops-16-trillion-as-inflation-surges-and-rates-rise.html?&qsearchterm=household debt

Despite the rising debt and inflation levels and higher interest rates, delinquency rates remained relatively benign.

“Although debt balances are growing rapidly, households in general have weathered the pandemic remarkably well, due in no small part to the expansive programs put in place to support them,” the Fed blog post said. “Further, household debt is held overwhelmingly by higher-score borrowers, even more so now than it has been in the history of our data.”

Through June, some 2.7% of outstanding debt was in delinquency, nearly 2 percentage points lower than the first quarter of 2020 as the nation was entering the Covid pandemic.

Fed economists noted that delinquency rates were nudging higher for subprime borrowers at the lower end of the credit scale.

It's interesting how two people can read the same article and draw different conclusions. You see "no doom and gloom" and "relatively benign", I see "The increase in borrowing comes with inflation running at an 8.6% annual rate in the second quarter that included a 9.1% increase in June - the biggest move since November 1981" and "Credit card balances surged $46 billion in the three-month period and 13% over the past year, which Fed researchers said was the largest gain in more than 20 years" and can't see how that's a good thing. The fact that historically financially savvy people with higher credit scores are carrying more debt than ever is not a good sign to me, it's basically saying "hey these people who always pay their bills on time are saddled with credit card debt now". This was the same Fed that said inflation wasn't coming, then when it came it was transitory, and now that it's here it's actually a good thing. Insanity, truly.

 

[Aluminum Falcon]

It's interesting how two people can read the same article and draw different conclusions. You see "no doom and gloom" and "relatively benign", I see "The increase in borrowing comes with inflation running at an 8.6% annual rate in the second quarter that included a 9.1% increase in June - the biggest move since November 1981" and "Credit card balances surged $46 billion in the three-month period and 13% over the past year, which Fed researchers said was the largest gain in more than 20 years" and can't see how that's a good thing. The fact that historically financially savvy people with higher credit scores are carrying more debt than ever is not a good sign to me, it's basically saying "hey these people who always pay their bills on time are saddled with credit card debt now". This was the same Fed that said inflation wasn't coming, then when it came it was transitory, and now that it's here it's actually a good thing. Insanity, truly.

Could be that with stimulus, and fear of a huge recession back in 2020/21 stopped people from accumulating debt, now they are finally adding debt back (for a myriade of reasons). You have to remember that last year American families had more savings then they had in 40 years. Now they’ve spent those savings, ( mainly due to the economy fully opening again IMO) and have taken on debt. 46 billion is a historic jump, but America is the largest consumer market on the planet, we LOVE debt, and credit card debt isn’t even back to where it was in 2019

 

[RivShore]

It's interesting how two people can read the same article and draw different conclusions. You see "no doom and gloom" and "relatively benign", I see "The increase in borrowing comes with inflation running at an 8.6% annual rate in the second quarter that included a 9.1% increase in June - the biggest move since November 1981" and "Credit card balances surged $46 billion in the three-month period and 13% over the past year, which Fed researchers said was the largest gain in more than 20 years" and can't see how that's a good thing. The fact that historically financially savvy people with higher credit scores are carrying more debt than ever is not a good sign to me, it's basically saying "hey these people who always pay their bills on time are saddled with credit card debt now". This was the same Fed that said inflation wasn't coming, then when it came it was transitory, and now that it's here it's actually a good thing. Insanity, truly.

The fact that this was Fed data certainly gave me pause given their recent track record but this is all year on year gains from an artificially low baseline when pandemic spending was at a minimum. Of course your going to have big spending/debt jumps when spending was limited prior. It's like the admin crowing about "record" jobs added - yeah, of course they are record adds from when most of the world was forced to stay home. Anyway, I think the most telling stat is that delinquencies are two points better than pre-pandemic. Maybe that will get worse as the "tranitory" inflation contiues to work it's way thru, but it certainly means people are meeting their obligations better than they were in Q1 2020 even after a few quarters of inflation.