Disney Dubbed a “Favorite” By Investors Amid Firing Thousands of Employees

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Bob Iger wearing a suit and tie

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According to one Wall Street bank, The Walt Disney Company has been named their best, most favored company among the media group following a well-received earnings report from Disney CEO Bob Iger last week.

Bob Iger
Credit: Drew Angerer/Getty Images

Last week, The Walt Disney Company beat Wall Street earnings expectations, with revenues and bottom-line profits surpassing analyst projections. Wednesday was a big day for Disney shareholders and fans alike, as newly-returned Disney CEO Bob Iger held his first quarterly earnings call in front of shareholders since stepping in to replace former CEO, Bob Chapek. In what is typically a finance-focused meeting, Iger presented Disney investors with his planned transformation of The Walt Disney Company from top to bottom.

Walt Disney World Resort, Disneyland Resort, Shanghai Disney Resort, Hong Kong Disneyland, Tokyo Disney Resort, and Disneyland Paris saw record-breaking profits in the last quarter of 2022. Despite worldwide inflation, Disney Parks made $2.1 billion in profits, up 35% from 2021.

In addition to the strength it saw within the Disney Parks, Bob Iger also dropped a bombshell on the company’s earnings call for the first quarter, revealing thousands of jobs will be cut. On Wednesday’s Q1 earnings call, Walt Disney Company CEO Bob Iger stated that Disney would be cutting its workforce by 7,000 jobs, which was just one of the measures the company is taking to cut billion of dollars in costs.

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Disney CEO Bob Iger also revealed several other exciting announcements during the call, stating that we would be getting sequels to several beloved Disney franchises like Frozen, Toy Story, and Zootopia, as well as revealing that plans are being made to bring Pandora – The World of Avatar to the Disneyland Resort in Anaheim, California. The Disneyland Resort is about to welcome its version of Mickey & Minnie’s Runaway Railway on March 4, 2023, a ride that first opened at Disney’s Hollywood Studios in Walt Disney World.

In response to all of the news and the report, J.P. Morgan decided to upgrade Disney stock to an overweight rating with a new price target of $135 this morning. J.P. Morgan would go on to say in its most recent note, “Disney is our favorite name among the group due to the company’s strong asset mix and what we expect to be a rapid decline in streaming losses in the next year. CEO Iger is focused on the path to profitability in DTC, and we expect margins to improve as the company pares away what had become during COVID, a bloated cost structure in DMED (Disney Media and Entertainment Distribution).”

Do you think it was a good decision for Disney CEO Bob Iger to cut 7,000 jobs to save on costs?  

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