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Credit: ITM Disney’s stock price is falling fast.
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Excitement for The Walt Disney Company has grown over the last few months, with the company announcing several major new projects within its theme parks division and new and exciting entertainment offerings. These projects range from new Star Wars adventures to the continuation of the Marvel Cinematic Universe (MCU).
However, Disney has also faced immense controversy in the first half of 2024, with the company dodging all kinds of attacks from public figures. Disney was engaged in a very public and very ugly battle against Florida Gov. Ron DeSantis over controversial Florida legislature, which saw Disney lose control of property in the state.
Train Partners founder Nelzon Pelts also attacked Disney, criticizing CEO Bob Iger and his leadership skills, claiming the Disney veteran was leading the company down the wrong path. Peltz attempted to snag seats on Disney’s Board of Directors alongside other public figures like former Disney executive Jay Rasulo.
Disney’s shareholder meeting came and went, with Disney emerging victorious. However, the company is still facing financial troubles, with its stock price falling fast on Wall Street.
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As of May 7, 2024, Disney’s stock price is $105. This marks a daily drop of over $10 or 9.04%. This is a stark improvement on a sixth-month scale, with Disney plummeting to $90 back in January. However, Disney stock has been falling slowly over the last few months, resting at $118 just a few weeks ago.
This is incredibly disappointing, especially considering all of the recent announcements made by Disney. According to a new financial report released by Disney, its media and entertainment division generated revenue of $6.19 billion over the second fiscal quarter of 2024. This marks an increase of 12% compared to a year earlier. Disney+ losses are tightening up as well, with a loss of $18 million compared to a loss of over $600 million during the same period a year prior.
Overall, Disney’s entertainment sector was profitable, with streaming revenue up a total of 13%.
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Also included in these reports was a statement from Bob Iger regarding the future of the Marvel Studios brand. Iger dropped a bombshell regarding the MCU, claiming Disney now plans to limit its output of Marvel projects, limiting production to “two good films” per year.
Iger explained that he’s “working hard with the studio to reduce output and focus more on quality” and that “overall, I feel great” about how things are ramping up.
Disney and Marvel Studios are gearing up for the release of Deadpool & Wolverine, which continues Marvel’s Deadpool series. When the first Deadpool film was released in 2016, neither the movie nor the character at the center of it, played by Ryan Reynolds, was considered a part of Disney and Marvel’s interweaving MCU storyline.
However, after the Fox and Disney merger, Disney now owned Deadpool, meaning future films could feature the infamous “Merc with a mouth.” As a result, Deadpool & Wolverine marks the first time Reynold’s portrayal of everyone’s favorite antihero will be under the control of Disney.
Related: Disney Officially Shares Marvel Franchise “Self-Destruction” Imminent
This downturn follows the disappointing and lackluster comments Iger made during Disney’s annual shareholders meeting earlier this year. While a few exciting details were announced, like Disney’s upcoming Moana 2 (2024), Disney and Iger really had nothing to say. Concept art for a new Avatar-themed land in Disneyland was revealed, but aside from comments about Disney’s proxy fight, no official details or concrete timelines were announced.
Disney previously announced that it would be investing $60 billion in its theme park division over the next decade. With such a large budget to play with, Disney has kept its cards rather close to the vest. Disney is bracing for several new projects within its theme parks, such as Tiana’s Bayou Adventure, which is set to open later this year at both Disneyland and Walt Disney World.
Stay tuned here for news on The Walt Disney Company.