Disney is investing in parks for the next generation: Analyst
August 12, 2024
Disney (DIS) held its D23 2024 Expo over the weekend, unveiling first looks at some upcoming shows and movies and announcing billions of dollars in theme park expansions. Rosenblatt Securities managing director Barton Crockett joins Market Domination to discuss Disney's outlook and the state of the overall media industry. "Disney gets most of its cash flow, a large portion of its value, the majority of its value, I think, from its theme parks. And what was concerning was the turn of the theme parks that we saw in this past quarter, where they had gone from predicting robust growth in operating income, to really expecting some pressure. And that's really in over the past month or two that the consumer has really turned," Crockett explains. He notes that parks are one of Disney's "iconic assets," and as seen at the D23 Expo, the company is investing for the "next generation of families that will bring their kids." Amid heated streaming wars, Crockett says, "We've been more constructive on Disney, but that's really on asset value long term anchored on the theme parks, which was challenged this past quarter with the near-term kind of headwinds. So it's a difficult space." He explains that Netflix (NFLX) "is clearly running away with the ball," and other media companies are struggling to keep up. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl Follow along with Yahoo Finance's coverage of Disney and its second quarter earnings reported last week: Disney CFO on theme park slowdown: Consumers are watching their pennies moreMaking a Disney vacation a bit more affordableDisney earnings 'a mixed bag' on streaming, parks: AnalystDisney could owe NBCUniversal another $5 billion for its stake in HuluDisney struggling to align its businesses for growth: AnalystThe secret behind Disney's streaming success: Disney CFODisney earnings: Streaming unit turns first profit while parks business lags2 reasons why Disney's CFO isn't too worried about the parks Read More...
Disney (DIS) held its D23 2024 Expo over the weekend, unveiling first looks at some upcoming shows and movies and announcing billions of dollars in theme park expansions. Rosenblatt Securities managing director Barton Crockett joins Market Domination to discuss Disney’s outlook and the state of the overall media industry.
“Disney gets most of its cash flow, a large portion of its value, the majority of its value, I think, from its theme parks. And what was concerning was the turn of the theme parks that we saw in this past quarter, where they had gone from predicting robust growth in operating income, to really expecting some pressure. And that’s really in over the past month or two that the consumer has really turned,” Crockett explains. He notes that parks are one of Disney’s “iconic assets,” and as seen at the D23 Expo, the company is investing for the “next generation of families that will bring their kids.”
Amid heated streaming wars, Crockett says, “We’ve been more constructive on Disney, but that’s really on asset value long term anchored on the theme parks, which was challenged this past quarter with the near-term kind of headwinds. So it’s a difficult space.” He explains that Netflix (NFLX) “is clearly running away with the ball,” and other media companies are struggling to keep up.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Melanie Riehl
Follow along with Yahoo Finance’s coverage of Disney and its second quarter earnings reported last week:
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