The Walt Disney Company saw the worst stock price loss since 2001 on Friday. The company has been struggling and suffering losses with its Disney+ streaming service and courted serious controversy and withering criticism from the Star Wars and Marvel fanbases for terrible creative decisions.
The corporate officers of Disney have assured their anxious investors that an upcoming price increase, amidst a recession and an inflationary crisis that is crushing entertainment budgets, and an ‘ad-tier’ that offers limited content with advertising will stop the financial bleeding according to Axios.
As reported by Breitbart however, this would not be the case. Disney’s stock would plunge a further 13 percent on Nov. 9, contributing to the overall loss of 44 percent year to date.
Todd Spangler of Variety tweeted that Disney lost about $24 billion in market cap that day.
Disney chief Bob Chapek told reporters in New York, “There is an increasing desire by our investor base to make sure there is something there, there, to get something out of it. Our investors expect us to have a return on that investment.”
— Sara Fischer (@sarafischer) November 10, 2022
The media giant reportedly took a $1.5 billion loss on streaming platforms Disney+ and Hulu in spite of recent positive trends in subscribership. According to Deadline, Disney+ added 12.1 million subscribers reaching a new high of 164.2 million globally. The obvious discordance between projected and actual growth led to Michael Morris of Guggenheim pronouncing the judgment: “These Are Not The Results You’re Looking For,” channeling Obi-Wan Kenobi as he decreased the 12-month stock price target of Disney from $145 to $115 per share.
Walt Disney Company stock tumbled today, down around 12%, the company’s biggest one-day percentage decline since it fell 13% on March 12, 2020. The company’s stock is now down over 43% year to date, compared to the overall Dow’s decline of 9.6%. pic.twitter.com/buAF8GtadH
— cartoonbrew.com – Animation News (@cartoonbrew) November 9, 2022
Axios reports that Disney has lost over $4 Billion on streaming during fiscal 2022, the outlet reported that Disney DFO Christine Mccarthy said that losses will narrow moving forward and that the media empire is still on track to be profitable by the end of 2024.