Disney Stock Plummets After Major Announcements From CEO Bob Iger

in Disney, Disney Parks

Bob Iger in front of the Disney logo

Credit: Disney

Disney stock is plummeting

Team Disney
Credit: The Walt Disney Company

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The Walt Disney Company is no stranger to controversy. In the last year alone, Disney has faced more backlash and criticism than it’s ever seen. Outside of the obvious problems like Disney’s unpopular decision to close Splash Mountain in both California and Florida, a lot of this drama can be attributed to Disney and Florida’s ongoing battle. This all started after Disney publicly denounced Gov. Ron DeSantis‘ Parental Rights in Education Act, or as it’s more commonly known as the “Don’t Say Gay” bill. This caused tons of headaches for Disney, with Walt Disney World ultimately losing its self-governing status after the Reedy Creek Improvement District was dismantled and taken over.

Disney also saw major corporate shakeups, with the most infamous example being the transfer of power between former CEO Bob Chapek and Bob Iger. Chapek took over the role of CEO from Iger in 2020 and served as CEO for two years before getting axed by Disney. Bob Iger took back over the reigns of CEO from Chapek in 2022 and plans to stay with The Walt Disney Company for several more years. Bob Chapek was certainly a controversial figure at Disney, with many hating how he approached creative decisions at the theme parks.

Walt Disney Company CEO Bob Iger in front of Cinderella Castle
Credit: Inside the Magic

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Financial troubles have also loomed over Disney as of late, with multiple films bombing at the box office this summer. While films like Haunted Mansion and Indiana Jones and the Dial of Destiny did bring in millions of dollars, it still wasn’t enough due to their enormous budgets. Disney has also seen drops in subscribers on its Disney+ streaming platform.

Disney recently dealt with one of the company’s biggest failures yet, the Star Wars: Galactic Starcruiser. This immersive hotel/cruise hybrid promised an incredible experience for Star Wars fans. Here, guests were the main characters in their very own Star Wars story as they explored the fictional Halcyon starcruiser. This two-night, three-day experience includes unique dining options, interactive activities, and an out-of-this-world atmosphere. The resort was also unique in that it connected directly to Star Wars: Galaxy’s Edge in Disney’s Hollywood Studios, providing guests with a seamless entrance into the park. However, Disney’s Galactic Starcruiser came at a high price, which ultimately was the resort’s downfall.

For a three-day voyage, the average daily would be spending thousands of dollars. While a trip to Walt Disney World and Disneyland is expensive, this is almost unbelievably expensive. After it failed to maintain solid bookings, Disney announced that the Galactic Starcruiser would be closing permanently in September, not even a year after it opened. Disney will reportedly lose hundreds of millions of dollars as a result of its Galactic Starcruiser closing and plans to use part of it as a tax write-off.

However, these financial troubles are most evident on Wall Street, where Disney stock prices keep plummeting.

A family in their room inside of Star Wars Galactic Starcruiser at Disney's Hollywood Studios in Walt Disney World Resort
Credit: Disney – Star Wars Galactic Starcruiser

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Disney stock dropped over 2% Tuesday morning, just after the company announced it would be expanding its theme park budgets. Disney shares are priced at $82.81, a drop of 2.6% from earlier this morning before the announcements were revealed.

In a new SEC filing, The Walt Disney Company will be spending $60 billion over the next decade at its theme parks. This massive amount of money will no doubt go toward new and innovative rides and attractions at all four theme parks in Florida and both theme parks in Disneyland, as well as multiple resorts around the world. Disney also reiterated that it has roughly 1,000 acres of undeveloped land to work with combined, which is the equivalent of seven Disneyland Parks.

Despite the exciting nature of this news, Wall Street tells a different story. These announcements were followed by drops in stock price, a trend that unfortunately keeps continuing for The Walt Disney Company. We’re honestly super excited to see how Disney expands within its theme parks division in the near future, but only time will tell if Disney is able to get out from under this heavy financial burden.

What do you think about The Walt Disney Company? How often do you visit the Disney theme parks?

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