If you’ve been watching the news over the last few months, the odds are pretty high that you may have seen Disney’s name in a number of stories.
First, Disney found itself in the news a number of times regarding Florida’s Parental Rights in Education Bill (what critics call the “Don’t Say Gay” bill). Disney ultimately issued a statement indicating that the bill never should have been passed or signed into law and its goal would be for the law to be repealed, a move that the Florida Governor said “crossed a line.” Following that, the repeal of Disney World’s Reedy Creek Improvement District (RCID) (which allows Disney World to essentially function as its own county) was placed on the table, and ultimately a bill was passed and signed to dissolve the RCID. Disney has since been in the news for things related to a repeal of its no-fly zone or copyright protections. Following these actions, we’re seeing some changes when it comes to Disney’s stock value.
According to Fox News, Disney could have one of the worst-performing stocks of the year.
Disney stock hit an all-time high at nearly $200 per share back in March of 2021. But, things look very different today.
As of Friday, April 22nd, Disney stock closed at $118.27, but fell after hours to $117.88. This is a look at the stock values for the year to date.
You can see just how much the stock values have changed over the last year.
This fall in stock value follows the situations Disney has encountered with the “Don’t Say Gay” bill and criticisms of its actions in relation to that bill.
It also follows the more recent passage of the bill that would dissolve the Reedy Creek Improvement District, which was created back in 1967 and has given Disney a great deal of power and discretion over decision-making for the land on which it operates in Orlando. Analysts have previously said that stripping Disney World’s power could cost residents and counties.
But there could be more impacting the stock as well. Fox Business shares that “Disney is also bogged down by investors’ diminishing enthusiasm for streaming services as inflation eats into America’s pocketbooks.” Not too long ago, we saw Netflix announced that it had lost 200,000 subscribers and expects to lose millions more.
Bloomberg noted that these troubles with Netflix could cause investors to “question whether the later-arriving media companies will sign up enough customers to justify all the money they are spending on fresh programming.” Disney stock and others fell a bit during that time as well. At that point (on April 19th) Disney stock was trading at around $124.98 after hours.
UPDATE: Disney stock values have continued to drop. As of May 10th, 2022, the stock was trading at around $108.49.
The last time the stock was close to that value was around June of 2020, at which point the stock was trading at $109.10.
Over the past several years, the last time the stock dropped BELOW today’s $108 price was back in May of 2020.
Now, the $108 price is, of course, nothing compared to the low of $85.98 hit in March of 2020. But times are also dramatically different than they were in March of 2020, at which time the parks had begun to shut down due to the COVID-19 pandemic.
Disney’s next earnings call is scheduled for May 11th, 2022, at which point we could learn a lot more about what’s happening with the company’s financial situation and stock values could significantly change.
We’ll continue to look for more Disney news, so stay tuned to DFB for all the latest updates.