Though Disney was absolutely in the right to shut down both Hong Kong Disneyland and the Shanghai Disney Resort during the Lunar New Year because of the current coronavirus outbreak in China and throughout the world, many economists have already stated what this could mean for the economic growth of the Disney company as a whole.
Already Disney’s stock has taken a tumble as a result of the news, falling around 3%, to the lowest it has been in months. The issue combined with China’s economic growth during the Lunar New Year weekend couldn’t have come at a worse time for the company.
Here’s the fall for reference:
While it’s very unlikely that Bob Iger is that worried by this news, it’s something that shareholders and potential investors are going to be keeping a very close eye on indeed. There is still no word on when the Shanghai Disney Resort and Hong Kong Disneyland will be open again.
The coronavirus outbreak has impacted China outside of just Shanghai Disneyland with a devastating impact already, particularly in Wuhan. Disney’s primary concern was rightly their guests and stopping the outbreak. Putting people before profit is certainly something that Walt Disney himself would have done.
While Tokyo Disneyland remains open, cast members and guests have been taking precautions in case the coronavirus more widely spreads into Japan.
Nevertheless, the theme park division of Disney is most likely the reason for this stock market loss and will likely be known as the “Disney Coronavirus Stock Drop” of 2020.
Disney theme parks have to put guest’s fears and safety at the top of the priority list but also need to make sure that the virus outbreak is minimized, the global markets are the least of Disney’s worries.
Health officials are still worried about the spread of the coronavirus in Shanghai, Hong Kong, and the rest of the world. Here’s hoping the Chinese people can get back to normality soon and enjoy the happiest place on earth.
What are your thoughts on the fall of Disney stock following the outbreak of the coronavirus? Let us know in the comments below.