Disney’s share value hits 9-year low.
Shares of the Walt Disney Company have taken a nosedive, reaching their lowest level in nearly nine years. This comes after a string of failed films and political controversies.
Commentators are pointing to the entertainment giant’s embrace and subsequent doubling down on a “woke” agenda as the cause of these recent losses.
One of the major issues stems from accusations that Disney has been trying to indoctrinate children with leftist ideology, leading to the alienation of parents.
The company found itself in a public battle with Florida Governor Ron DeSantis over his state’s efforts to prevent the teaching of sexually inappropriate materials to young children in schools.
Another PR disaster struck when leaked footage of an internal meeting revealed Disney executives openly discussing how to incorporate left-wing propaganda into their films.
Further backlash ensued when Disney hired Seann Altman, a biological male who identifies as “gender fluid,” to promote girls’ clothing on social media. A TikTok video of Altman dressed as Minnie Mouse sparked controversy.
Disney Stock Plunges to a New Low
On August 24, Disney’s stock value plummeted 3.9 percent to $82.47, its lowest since October 16, 2014. This marks a 59 percent drop from its all-time high in March 2021.
Options trading for Disney was unusually active, with investors betting on put options to protect against further decline in stock value.
The overall weakness in the markets, coupled with caution ahead of Federal Reserve Chairman Jerome Powell’s comments on interest rates, further weakened Disney’s value.
According to Reuters, several investors are predicting a continued price drop in the coming months.
The Epoch Times reached out to Disney for comment.
CEO Promises Changes to Revive Company Fortunes
During the latest earnings report meeting, Disney CEO Bob Iger assured investors that the company would take steps to improve its financial situation. These steps include price hikes across streaming services, increased ad volume, and staff cutbacks.
Mr. Iger acknowledged the challenging environment in the near term and emphasized the need to enhance the quality of Disney’s films and focus on streaming ESPN directly to consumers.
He also highlighted the importance of resolving the ongoing strikes in Hollywood, which have halted production in the film and television industry.
Disney reported a loss of $512 million in the third quarter, attributing it to declining linear TV business, underperforming streaming services, box office failures, and decreased park attendance.
MarketWatch quoted Brandon Nispel, a KeyBanc Capital Markets analyst, stating that Disney is facing problems across all of its businesses.
The company has experienced a decline in TV subscribers, impacting advertising and revenue. Disney+ saw a surge in cancellations, falling short of analyst estimates. Additionally, the loss of Indian Premiere League cricket matches led to a significant drop in subscribers to the Disney Hotstar service in India.
Disney incurred restructuring losses and severance payments to laid-off workers, further contributing to its financial challenges.
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