The Walt Disney Company isn’t out of the woods yet in its effort to reverse its financial troubles, with a prominent firm downgrading the company’s stock this week citing continued troubles at Disney theme parks, once the company’s most reliable revenue-generating division.
Disney shares dropped more than 2 percent Tuesday following the downgrade by Raymond James analysts who wrote that Disney’s “parks are under pressure,” with a “questionable consumer outlook” as demand slows.
Households hammered by record-high consumer prices under the Kamala Harris and Joe Biden administration are cutting back on non-essential spending, like pricey vacations.
Disney confirmed this in its most recent quarterly earnings report in August, with executives specifically citing inflation when it said that its “Experiences” division — which includes theme parks, cruise ships, and other live entertainment offerings — will see a decline in income in the next few quarters.
Disney’s chief financial officer Hugh Johnston even said lower-income consumers are being hit hard in the current economy and as a result, are no longer visiting Disney parks like they used to. For the most recent quarter, Disney reported its Experiences operating income fell 6 percent.
Disney parks have long been a reliable cash cow thanks to middle and working class American families — many of whom save up for years to afford the expensive trip. But under the Biden-Harris administration, consumer prices have risen to record levels, forcing families to slash spending in order to pay for groceries, rent, and insurance.
The latest piece of bad news for Disney comes on the heels of yet more layoffs.
Last week, the company axed an estimated 300 corporate-level jobs — all in the U.S., with multiple divisions impacted, including legal, human resources, finance, and communications.
Disney eliminated a whopping 7000 jobs worldwide last year, with CEO Bob Iger promising an additional $2 billion in additional cost savings.
Meanwhile, Disney keeps churning out expensive flops for its streaming services.
The Acolyte — the most recent woke Star Wars series — was canceled after just one season following heavy promotion and a budget reported to be $231 million. The feminist-themed series featured a coven of lesbian witches as well as a transgender actor in a prominent role.
The show’s creator recently warned Star Wars fans who engage in wrongthink, saying anyone who engages in what she calls “bigotry, racism, or hate speech” isn’t a real fan.
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