What’s Happening:
What happens when you try to sell socialist ideas to a massive audience of capitalists who are paying most of your bills? You go broke. That’s the state of being woke.
Entertainment companies continue to bang their heads against a wall. They don’t believe the old saying that you can’t keep doing the same thing over and over and expect different results. Going woke is causing one of the most beloved companies in the world to dance and sing its way toward financial ruin.
Disney continues to churn out some of the worst movies and theme park amusement in the history of the company. Culturally biased decisions and weaker sales revenue are taking a toll on Disney stock.
From Fox Business:
Disney’s stock was downgraded this week by investment advisory company KeyBanc Capital Markets over fears of stalled growth at its Disney+ and Hulu streaming services and lower attendance at its theme parks, according to reports.
KeyBanc analysts lowered Disney’s rating from overweight to sector weight Wednesday, causing its stock price to fall.
Those are fancy business terms for a bank not liking how Disney is running its business. As KeyBanc noted in the Fox story, “We believe the stock is unlikely to work until a number of items have line of sight to being resolved,” analysts led by Brandon Nispel said on Wednesday, according to Barron’s.
How bad is Disney stock? Over the last few years of spewing ideological movies and theme park subject matter the company has continued to suffer. It closed at $89.79 today. Disney stock dropped by more than 27% in the last year and once topped $200 in 2021. That’s a lot of cheese out the window for stockholders who want profits not ideology.
Bad decisions have affected Disney operations in more areas than just subpar movies and lower attendance theme parks. Major media companies like Disney have turned to online streaming services as a large portion of current and future revenues. Analysts don’t like how the House of Mouse is lagging in subscribers across its streaming platforms.
Companies that don’t deliver what their customers want are doomed to fail. Disney built its reputation on wholesome family values and was launched into a worldwide juggernaut by Americans.
An American-based company should hold true to the business that grew from the devoted support of generations of American families. Otherwise, the House of Mouse may fold like a house of cards.
Key Takeaways:
- Support for House of Mouse weakens as stock drops again.
- Bad decisions and poor themes are hurting Disney’s operations.
- Big banks don’t like the negative direction Disney is headed.
Source: Fox News
