Posted 9/20/2023, 4:30:00 PM

Disney Investors Concerned by Lack of Clarity on $60B Parks Spending Plan

Some Disney investors concerned about $60B parks spending plan, lack of ROI details
Parks spending to nearly double over next decade, funded through cash reserves and borrowing
Investors hoped for earnings acceleration with higher spending; stock dropped on lack of clarity
Content side still bigger revenue generator but parks driving profit; DTC seen as under-monetized
$250M write-down taken on Star Wars hotel that closed after just 1 year due to low demand

indiewire.com

Relevant topic timeline:

9/19/2023

Disney Shares Drop After Unveiling $60B Plan to Aggressively Expand Parks and Cruises

Disney shares declined in early trading after the company announced plans to invest $60 billion in its theme parks over the next decade to further increase profitability and expand its reach to a large addressable market of individuals with "high Disney affinity" who have yet to visit the parks.

10/6/2023

Analysts Advise Buying Disney Stock While It's Undervalued

Walt Disney received positive recommendations from analysts to buy the stock due to its impressive streaming services and resilient theme park business.

10/18/2023

Disney Reports $13.2B Revenue and $1.9B Profit for ESPN Ahead of Standalone Spinoff

Disney plans to break out its Sports segment as a standalone business, revealing that it generated $13.2 billion in revenue and close to $1.5 billion in operating income for the first nine months of fiscal 2023, showcasing why the company is highlighting this division separately.