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This follows an 8% increase in revenue for the same period a year earlier, so it’s basically back to where the top line was two years ago. Adjusted earnings declined slightly in the fiscal first quarter last year, so another dip isn’t a good look. Disney reports financials for the first quarter of fiscal 2024 next week, stepping up with results shortly after next Wednesday’s close on Feb. 7. Under the plan, Disney promises to invest between $1.9 billion to $2.5 billion within the next 10 years. If Disney’s investment does not reach the $2.5-billion mark, the company vows to pay an additional $5-million payment to the city. DisneylandForward is asking the city to give the company more flexibility to overhaul areas that were originally designated for hotels to also include park rides, attractions and retail stores.
Despite the stock market boom during the first half of the year, shares are trading near their 52-week lows, and the stock is below where it was before the pandemic even as the broad market has gained substantially since then. TSG goes after Disney for alleged breach of contract, claiming the entertainment giant favored its streaming platform and boosted stock price. Walt Disney’s stock is owned by a variety of retail and institutional investors.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Disney is a complex company with several large businesses, including its cable and broadcast networks, streaming services, studio entertainment, theme parks, and consumer products like toys. While the media business is struggling, the parks segment has been on fire, growing second-quarter revenue 17% to $21.8 billion, and operating income, which doesn’t include corporate expenses, 23% to $2.2 billion.
- The company was founded in 1923 as the Disney Brothers Studio and operated under several other names before being branded as The Walt Disney Company in 1986.
- Marvel doesn’t seem to have moved with the times as the recent ‘Barbenheimer’ phenomenon showed that post-pandemic audiences don’t want more of the same, they want something different.
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- Disney stock got slammed as the Dow Jones index company closed its theme parks and suspended Disney Cruise Line departures.
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The company beat analysts’ expectations, with revenues for the quarter and the year growing 5% and 7%, respectively. Selling off the traditional TV assets will put even more pressure on the streaming division, and Disney doesn’t expect streaming to be profitable until the end of fiscal 2024 or next fall. However, those thinking that the stock is a bargain just because the price is low may have a long wait until it rebounds.
Over the last twelve months, their gains have accounted for more than 60 percent of the return in the S&P 500. Tesla remains lower than it was when the S&P hit its trough in October 2022, but over the last twelve months, the company has surged more than 64 percent, responsible for nearly 3 percent of the S&P 500 rally on its own. It will be difficult for the Disney media business to return to its former peak profitability, but the potential is there, especially as movie attendance continues to recover. Since Iger returned as CEO, Disneyland has increased the number of the cheapest tickets that it sells and has allowed guests to park hop earlier.
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What’s more, Marvel is still persisting with its inter-connected storylines despite lukewarm receptions to several key instalments, chief of which is Quantumania as it introduced the villain for the Marvel’s upcoming team-up movies. It doesn’t bode well for them given how low the turn-out was for Quantumania. In February, https://traderoom.info/ Iger explained that Disney needs to “reduce costs on everything that we make because, while we’re extremely proud of what’s on the screen, it’s gotten to a point where it’s extraordinarily expensive.” Its score was low but not as low as the one for the latest instalment in the inter-connected Marvel Cinematic Universe.
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Marvel doesn’t seem to have moved with the times as the recent ‘Barbenheimer’ phenomenon showed that post-pandemic audiences don’t want more of the same, they want something different. When 2012 team-up movie The Avengers became the first Marvel Studios movie to cross the $1 billion mark, the franchise gained even more importance to Disney. It began a process of institutionalization leading to movies based on characters who appeal to a diverse range of groups to maximize takings. The movies were a hit with adults as they treated cherished characters from their childhood seriously.
This supported Disney+ and its other streaming services, but also dealt a blow to Disney’s box-office releases, live sports coverage, and its theme parks. If it’s able to post blowout profits next week, it would silence the criticism that it’s not doing a good enough job of controlling its costs. Disney’s global collection of theme parks should also come through again. You probably also shouldn’t sleep on Disney+ raising prices for its premium ad-free formats in October, just in time to push top-line results and the platform’s margin higher for the fiscal first quarter.
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Anaheim is a working-class city whose residents have more pressing concerns than civics, leaving room for unscrupulous officials to operate, Arellano writes. City officials, however, say two of the roads that could be privatized — Hotel Way and Clementine Street — are now used as entryways into a Disney parking lot. Magic Way, Lyster said, would remain open to vehicles heading into the resort.
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In total, the company has earned 135 Oscars including 32 awarded directly to Walt himself and is said to have created many of the most loved and enduring films of all time as well as revolutionizing the theme park industry. In August 2011 Disney saw it’s stock price drop nearly 14% in one day after a number of multiple analysts downgraded it. A month later, Disney stock price dropped below $30, which was a year to date low. However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years. Disney stock price broke $50 in 2013, the stock price hit $75 a year later and then finally smashed the $100 ceiling in 2015.
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But Disney, a powerful and dominant broker in Anaheim politics, is also asking the city to hand over some adjacent streets to the company. The move would give Disneyland control over Magic Way, Hotel Way classic pivot point formula and part of Clementine Street near the resort. Netflix’s forward P/E multiple of 34.2 is far more expensive than Disney’s, but investors who value quality might take this deal any day of the week.
Instead of slashing so many jobs, Disney should perhaps have scrapped Marvel’s upcoming shows based on less-known characters, paused its interconnected storytelling and dropped Lightning Lane and Genie+ from the parks. These features present persistent challenges and a perfect storm for Disney. Lightning Lane and Genie+ keep guests away from the parks, which impacts its revenue, whilst the cost of Marvel’s worldbuilding batters its bottom line. That’s before you even get to other headwinds facing the Mouse such as the effect that cord-cutting is having on its ESPN division. It was inevitable that consumers wouldn’t be able to afford the park prices in the long term so attendance would wane. Genie+ and Lightning Lane are great ways of generating revenue in a bull market but when things turn bearish they look like a liability.
Shares of Walt Disney (DIS 1.05%) fell by 6.9% on Friday following the release of Netflix’s (NFLX 0.60%) fourth-quarter results. The simple answer to that question is that Lightning Lane and Genie+ still remain despite being the most hated changes of them all. So the restructuring has disenchanted investors whilst fans are still furious. Although guests hate this new model, the Street loved the incremental payments that come with it and this is another reason why Disney’s stock soared. However, this actually set Disney up for a fall just as it did when its stock surged on its decision to place its chips on streaming. The clearest example of this came with the removal of the free Fastpass system which gave guests a specific time to return to rides and cut the queues.