Is Disney going broke

[Aluminum Falcon]

The next quarterly report should paint a bigger picture. You might think that the Parks are doing well currently, but that's failing to take into account the plummeting share price, which is usually a sign of impact throughout the company, and not just one division.

The market can be a good indicator of how a company is performing, but during this time every company is hurting, Disney is definitely hurting more on their stock price, but based on their last few quarters it's hard to blame the company for their falling stock price.

Also i've heard for the last 2 quarters on these boards to wait until next quarter, I think it may be time to change the tune haha

 

[Ermise]

Disney's stock is down because it was extremely overvalued, more so than many other stocks partially due to the Disney+ excitement, which is why it was among the biggest decliners in 2021. I think most people would agree stock valuations across the board were overstretched and we are finally seeing valuations come back down to more reasonable levels. Historically DIS has roughly traded in the range of 15-20x earnings. Disney is clearly profitable today with earnings increasing, but not yet back to pre-COVID levels. If Disney was "going broke" the stock would not be trading anywhere close to where it is today. Yes, the theme parks have been extremely profitable for Disney, but that segment only accounted for 14% of 2021 revenue. The majority of revenue comes from their media segment which Disney is trying to transition from traditional cable networks (ESPN, etc.) to Disney+.

Looking at a broader index like the S&P 500 index (the Dow Jones is only 30 stocks and virtually no one in the investment management industry refers to that particular index), Disney was the 24th biggest decliner in 2021.


Disney Earning per share Disney Stock Price at year-end
2022 (avg estimate): $4.11 $93.50 (22.7x times expected earnings at today's price)
2021 (calendar year): $1.68 $155.83 (92.8x earnings)
2020 (calendar year): (-$2.73) $182.26 (can't calculate with negative earnings)
2019 (calendar year): $5.94 $145.29 (24.4x)
2018 (calendar year): $7.31 $108.10 (14.8x)
2017 (calendar year): $7.05 $108.95 (15.5x)

 

[TiggerBouncy]

every year there are economists, stock analysts, billionaire tycoons, politicians, ect. calling for or against recessions.

"There's always an Arquillian Battle Cruiser, or a Corillian Death Ray, or an intergalactic plague that is about to wipe out all life on this miserable little planet, and the only way these people can get on with their happy lives is that they do not know about it!" - Agent Kay.

middle-classes being squeezed amidst grappling with a combination of rising costs of living and stagnating wages. <Later on>
with many being priced out of a vacation due to the cost of living skyrocketing.

Although I agree with others that I do not believe the current environment is entirely without precedents, I do agree with this statement. I think that right now, the cost of a Disney Vacation tabbed together (not just the price of Disney, but the cost of flying or driving and of travel altogether) as well as the squeeze on middle America budgets with the huge prices for groceries, etc - that's making it hard for most average families to afford to vacation and they will be rethinking those dollars.

However, there is a big earmark in that - it depends how long it goes on for. I know my family has cut our vacation budget back this year to one trip - that's got NOTHING to do with Disney in particular, just with the budgets of rising costs for rent / mortgage, food, gas, utilities, etc. Although it doesn't hit vacations already paid for (we are paid up through November), it's causing us to take a hard look at 2023. But by the time we need to pay for those 2023 vacation, the environment may have turned around again. The longer it drags on though, the more people are going to sack those dollars into the pillow cover.

 

[TsWade2]

Disney needs to fire Bob Chapek and hire a new CEO of Disney immediately, or else Disney will be bankrupt and gone forever! If it’s gone forever, I’ll plan a funeral ceremony of the company. Good lord, I’m so pathetic!

 

[TiggerBouncy]

Disney needs to fire Bob Chapek and hire a new CEO of Disney immediately, or else Disney will be bankrupt and gone forever! If it’s gone forever, I’ll plan a funeral ceremony of the company. Good lord, I’m so pathetic!

I think very few people would argue that Chapek is good for the company. However, I doubt that he can bury the company all by his lonesome It will survive him. He will have done a lot of harm on his way out, but I have no doubt the company will survive.

 

[DSLRuser]

the saying says...go woke, go broke...maybe it is true

 

[Douglas Dubh]

That's because Brietbart is garbage.

Almost all journalism is.

 

[lugnut33]

Almost all journalism is.

Not true. I really dislike the idea that all journalists are bad people who have hidden agendas, therefore you can't believe anything that's written.

 

[Aluminum Falcon]

Not true. I really dislike the idea that all journalists are bad people who have hidden agendas, therefore you can't believe anything that's written.

Not bad people . I would say most journalism is an opinion instead of stated fact, and that's where the problem lies

 

[BrianL]

Not bad people . I would say most journalism is an opinion instead of stated fact, and that's where the problem lies

Journalism has alwasy been stated fact AND opinion, it's just that these days of super-slick, 24-hour news coverage, it has become very difficult to tell one from the other. Unfortunately, that is the only type of media people want to see - they are only giving us what we deserve. Pure journalism doesn't get the viewers and clicks - if it did there would be a lot more of it.

 

[Aluminum Falcon]

Journalism has alwasy been stated fact AND opinion, it's just that these days of super-slick, 24-hour news coverage, it has become very difficult to tell one from the other. Unfortunately, that is the only type of media people want to see - they are only giving us what we deserve. Pure journalism doesn't get the viewers and clicks - if it did there would be a lot more of it.

I don't disagree entirely, but it's primarily why i get my news from Reuters or the AP, and draw my own assertions off of that. Everything else just seems to be for entertainment value, which is Ludacris to me, but who am i haha

 

[BrianL]

I don't disagree entirely, but it's primarily why i get my news from Reuters or the AP, and draw my own assertions off of that. Everything else just seems to be for entertainment value, which is Ludacris to me, but who am i haha

Right, and Reuters or AP are about the purest journalism out there right now, though there is always still some opinion interspersed. They do a much better job of being clear about it though. Also, how many people do you know who get their primary news from either of them? Yeah. Personally, I do have the AP website in my bookmarks.

 

[DCLMP]

Not bad people . I would say most journalism is an opinion instead of stated fact, and that's where the problem lies

People watch the news to affirm their own beliefs. You'll never convince someone they're being lied to if their views align with the person lying to them. There is also no such thing as unbiased news.

 

[Aluminum Falcon]

People watch the news to affirm their own beliefs. You'll never convince someone they're being lied to if their views align with the person lying to them. There is also no such thing as unbiased news.

Sure there is. For example, there was a fire on 123 fake st last evening at 6pm.......

 

[Douglas Dubh]

Not true. I really dislike the idea that all journalists are bad people who have hidden agendas, therefore you can't believe anything that's written.

I don’t think they’re bad people, but most aren’t as smart or well-informed as they think they are.

 

[BrianL]

Sure there is. For example, there was a fire on 123 fake st last evening at 6pm.......

The fire started because "inflamable" means "flamable" - what a country!

 

[Aluminum Falcon]

The fire started because "inflamable" means "flamable" - what a country!

haha, and there's the other shoe

 

[BrianL]

haha, and there's the other shoe

That is one of the all-time best episodes!

 

[DSLRuser]

Sure there is. For example, there was a fire on 123 fake st last evening at 6pm.......

Just the facts.....as soon as the story begins to expand and tell the read what a fire is and how this may have started, it stops being news and is now opinion.

Too many journalist dont give their audience enough credit for being smart enough to decide for themselves, so they nudge them in a certain direction.

 

[Aluminum Falcon]

Just the facts.....as soon as the story begins to expand and tell the read what a fire is and how this may have started, it stops being news and is now opinion.

Too many journalist dont give their audience enough credit for being smart enough to decide for themselves, so they nudge them in a certain direction.

I agree, just don't blame the journalist, they are reading off a teleprompter, blame the guys writing them up