Disney Stock News & Earnings

[CaptainAmerica]

So, if you were advising Mr. Chapek at this point, what would you recommend?

No more statements about hot-button social issues. Don't ANNOUNCE a no-more-politics policy, simply stop doing it. Work behind the scenes to come up with some kind of face-saving compromise with the State of Florida on Reedy Creek. Negotiate a golden parachute resignation for Latondra Newton. Announce something splashy and unexpected, like a new X-Men movie, a reimagined SpectroMagic, or Star Wars 10. Anything to get people distracted. Hire Jon Favreau as EVP and Chief Creative Officer.

 

[Ms Bibbidi]

I think their current silence is probably part of their strategy at this point. I was just reading about Mr. Iger. Apparently he was more outspoken on political issues than Mr. Chapek. These are very tough issues for Disney - and all of us.

 

[TheDailyMoo]

I think their current silence is probably part of their strategy at this point. I was just reading about Mr. Iger. Apparently he was more outspoken on political issues than Mr. Chapek. These are very tough issues for Disney - and all of us.

I've thought about this as well. I've been waiting for Disney to double down on their views because they've been coming in hot and heavy and crickets. I think at some point some of the cooler heads (and normal business execs) grabbed some people by the proverbial collar and were like just shut the heck up. Now this may also be because they are getting ready to fight the state in court and their lawyers have advised them as such. Time will tell. I hope it's the former.

 

[CaptainAmerica]

I've thought about this as well. I've been waiting for Disney to double down on their views because they've been coming in hot and heavy and crickets. I think at some point some of the cooler heads (and normal business execs) grabbed some people by the proverbial collar and were like just shut the heck up. Now this may also be because they are getting ready to fight the state in court and their lawyers have advised them as such. Time will tell. I hope it's the former.

The rumor mill would have it that Chapek himself is the cooler head and he was set to put the company on a "no more politics" trajectory until he was kneecapped by Iger loyalists within the company.

I used to think that Iger and Chapek were both "business first" executives and that Iger was just better at keeping his HR types under control. But now I'm thinking that Iger himself might be a true believer that the company should be agents of social change, and that his lieutenants have been actively undermining Chapek's attempts to go the other direction.

 

[New Mouse]

The rumor mill would have it that Chapek himself is the cooler head and he was set to put the company on a "no more politics" trajectory until he was kneecapped by Iger loyalists within the company.

I used to think that Iger and Chapek were both "business first" executives and that Iger was just better at keeping his HR types under control. But now I'm thinking that Iger himself might be a true believer that the company should be agents of social change, and that his lieutenants have been actively undermining Chapek's attempts to go the other direction.

You are already on the verge of losing what workforce you have left. It would be hazardous to the company to remain silent.

 

[TheDailyMoo]

Disney is not supporting their employees' views. The Reimagine Tomorrow bunch are not representative of Disney's employees. They are a faction within a faction and they've been elevated to sole arbiters of all that it Good and Right. This was not Chapek's doing, it was Iger's doing, and Chapek has been unable to get it under control.

I find it staggering that so many people that proclaim to be the biggest fans of all things Disney don't see this. Iger is at the root of all this. Chapek...sucks...he does...he isn't cut out to be the CEO of Disney but he is a fall guy at best. It is extremely public knowledge that Iger had political aspirations and steered the company to be used as a political machine. It was way more subtle in his earlier days and has gotten more and more pronounced as time has passed. He is the one who has littered the company with people that are politically his allies (this is the nicest, least political way I can say this) and will support him and his narratives. They are not just on the board but throughout all levels of execs.

Chapek is a puppet...actually more like a muppet but that's besides the point.

 

[CaptainAmerica]

You are already on the verge of losing what workforce you have left. It would be hazardous to the company to remain silent.

They've alienated a much larger segment of their workforce by speaking up then they risked when they were silent.

 

[Ms Bibbidi]

I've thought about this as well. I've been waiting for Disney to double down on their views because they've been coming in hot and heavy and crickets. I think at some point some of the cooler heads (and normal business execs) grabbed some people by the proverbial collar and were like just shut the heck up. Now this may also be because they are getting ready to fight the state in court and their lawyers have advised them as such. Time will tell. I hope it's the former.

After reading the specific language of the bill Florida passed for the dissolution of the RCID, I do not think there will be litigation. At least the chance is becoming much smaller. Maybe there is a First Amendment issue — freedom of speech. But that will not spawn litigation because even if the court overturned this legislation because there were remarks about curbing opposition to the education bill, the Legislature could just do it again and state different reasons. Disney has to continue operations in Florida. These are not the kind of issues Disney will fall on its sword over. So, I am leaning towards viewing the silence as the start of a return to a more traditional focus in management. As you say, “cooler heads.” As you say they were “coming in hot.” The silence is quite a contrast, so something has certainly changed. So, my guess is this does not head to the courts.

 

[GCC55]

They've alienated a much larger segment of their workforce by speaking up then they risked when they were silent.

Editing because this is getting into politics. Perhaps the thread should be closed.

 

[john7994]

Editing because this is getting into politics. Perhaps the thread should be closed.

Long past that threshold ...

 

[Ms Bibbidi]

The rumor mill would have it that Chapek himself is the cooler head and he was set to put the company on a "no more politics" trajectory until he was kneecapped by Iger loyalists within the company.

I used to think that Iger and Chapek were both "business first" executives and that Iger was just better at keeping his HR types under control. But now I'm thinking that Iger himself might be a true believer that the company should be agents of social change, and that his lieutenants have been actively undermining Chapek's attempts to go the other direction.

From the articles I have been reading, this scenario is clearly a good possibility. If so, the road forward is fraught with land mines for Chapek. He can do it but he is going to have to walk back some “commitment language, heavily screen content for family friendly material and possibly part company with some current employees. He will have to be really strong to weather those stormy seas. As I said earlier, diversity and inclusion and all are nice good, friendly ideas, but there is also a dark and possibly predatory side that can sink the company. Lines have to be drawn and standards set so employees and the public are comfortable, but values of Disney are also kept.

 

[Ms Bibbidi]

It is not my intention to discuss politics.

 

[Disney Bobby]

I agree. At this point, I see it was a massive failure in leadership. None of these goons care about anything other than money anyway. Instead of doing the hard work to develop sound, innovative business decisions that improve the customer experience, they try to pander for publicity. In this case, they got it very, very wrong. Just feels lazy and disconnected. Seems like they pay far more attention to crybabies on twitter than they do the actual people that show up and hand them tons of money.

DIS needs to clean house.

 

[TheDailyMoo]

Why are you comparing a blue chip stock such as Disney to a more volatile stock like Netflix and expecting the same result? If you want high risk/high potential rate of return, blue chip is not the place to put your money.

Jan 1, 2015 Jan 1, 2020 Post Pandemic high Today
Dis 93.75 146.50 197.16 118.27

BLUE CHIP Peers (non tech)

HD 103.53 218.93 415.40 300.11
GS 194.41 231.58 419.69 319.77
MCD 93.26 200.08 268.07 250.17
JNJ 104.52 144.28 182.12 181.54
NKE 47.51 101.92 177.51 129.07 (one of the worst performing Dow30)
HON 95.56 178.86 233.79 190.63
WMT 85.90 117.89 157.41 156.86
KO 42.14 54.69 67.00 65.25
UNH 100.78 289.54 545.96 520.94

I have no idea why some of you keep coming at me with such a defensiveness of this severely underperforming laggard of a stock. I too am a bagholder and obviously you all are as well and can't fathom that you made a poor choice in purchasing the stock? This is the only conclusion I can come to.
I can run these numbers for days. Is Home Depot, McDonalds, Walmart, Johnson and Johnson, United Healthcare enough of NON TECH stocks??

I can do this with the Index Funds if you'd like! SPY? Vanguard? VTI? VOO? What's your pleasure?
Pardon if I get a little snippy when called out especially when I have more than a leg to stand on...I have numbers. I'm not doing the percentages and lest I be called out for "cherry picking" I went straight with January 1st from 7 years ago. You can pick other timeframes that I'm sure show Disney doing amazing...like a random week last year or the like...

Feel free to show me how great this tech...no wait we're not tech...oh wait we are tech...oh hold on we're a legacy-....nope tech again...until next week when we're parks again...

Edited to make sure I mention I love Disney and am not wishing for it's downfall especially as I hold a good chunk of stock...but I do so hate this current "leadership"

 

[Jrb1979]

I agree. At this point, I see it was a massive failure in leadership. None of these goons care about anything other than money anyway. Instead of doing the hard work to develop sound, innovative business decisions that improve the customer experience, they try to pander for publicity. In this case, they got it very, very wrong. Just feels lazy and disconnected. Seems like they pay far more attention to crybabies on twitter than they do the actual people that show up and hand them tons of money.

DIS needs to clean house.

By the time they clean house it will be too late. Damage has already been done.

 

[Ms Bibbidi]

The bottom line is what are Disney’s values? What is Disney’s heritage?

The current CEO, no matter who that person is at any given time, is a steward; just like a rancher is a steward of the land.

Shareholders and the Board of a successful business entrust a CEO with this prime directive. Anything the CEO does should be first thought out against this mantle of responsibility.

Mr. Chapek violated that trust trying to make his job easier to pander to and appease people trying to change Disney. His loyalty must be first to Disney and not as a champion of any other group no matter how fashionable. Such a cataclysmic shift should have been staffed and received Board approval before being implemented. There are ways to participate in social change, but simply calling a meeting of one vocal group and heading out of the chute like a rodeo bull to champion their cause is not the way. The Board and shareholders appear to have been seriously disrespected here.

Being a CEO or even being a Governor is very much still being a servant. The power given is the power to implement the core values of the larger entity.

 

[Jrb1979]

The bottom line is what are Disney’s values? What is Disney’s heritage?

The current CEO, no matter who that person is at any given time, is a steward; just like a rancher is a steward of the land.

Shareholders and the Board of a successful business entrust a CEO with this prime directive. Anything the CEO does should be first thought out against this mantle of responsibility.

Mr. Chapek violated that trust trying to make his job easier to pander to and appease people trying to change Disney. His loyalty must be first to Disney and not as a champion of any other group no matter how fashionable. Such a cataclysmic shift should have been staffed and received Board approval before being implemented. There are ways to participate in social change, but simply calling a meeting of one vocal group and heading out of the chute like a rodeo bull to champion their cause is not the way. The Board and shareholders appear to have been seriously disrespected here.

Being a CEO or even being a Governor is very much still being a servant. The power given is the power to implement the core values of the larger entity.

Personally I think the board is fine with what's going on. Chapek does have to run things by them before doing anything. I do agree with what you said about the shareholders, they should be very upset. The stock is at its lowest in a very long time. Add in what's going on now with Reedy Creek and it's just getting worse. IMO once this run of people with cancelled vacations is over I think Disney will have a down turn for awhile.

 

[71 Truck]

In my opinion, from a few things I have read and seen on other web sites it looks like Bob Chapek did not want to wade into this topic, this is why he did not say anything for a while.
I am going to us a term some might not like but in my opinion it looked like he was either bullied into or pressured into making a statement by a very vocal and powerful minority of cast members.
These are all just my opinions and a guess as to what lead up to this.

Think of the cast members who have a different view of the topic that started all of this and how they must feel, no one from the company is making a statement supporting their views for them. They might feel as tho the company does not care about or support them.
That is just my opinion.

I am for the idea of diversity however it has to be for all and it has to be equal. A company that has to answer to its share holders, as I have said in the past need to stay neutral in these types of situations. You can't pick one side and not expect to upset the other side especially if it is a large percentage of your customer base.


In the end there are going to be people who will not return to Disney for their entertainment or have anything to do with Disney.
In the end there will be people who will not return to, or will never visit a Disney park.
In the end there will be cast members who will never look at the company they love the same way.
In the end some people will always not be happy about what a company does in these types of situation.
In the end some people just don't care.
In the end I think his is going to cost the stock holders money, but I think it's short term.
In the end Disney will survive and continue to grow but it will take time.
Once again these are just all my opinions, but what do I know

My wife and I are/were huge Disney fans for many years. We own a Disney Vacation Club and have for over 25 years. We are stockholders and plan to hold our stock for many more years. We have been on 13 seven day Disney cruises. We have spent a lot of money with Disney over the last 35 years and I mean a lot, somewhere in the low six figure mark.
With that said we are giving ourselves a break from spending any more money than we are obligated to for now, however at some point we will return. .

 

[Ms Bibbidi]

Personally I think the board is fine with what's going on. Chapek does have to run things by them before doing anything. I do agree with what you said about the shareholders, they should be very upset. The stock is at its lowest in a very long time. Add in what's going on now with Reedy Creek and it's just getting worse. IMO once this run of people with cancelled vacations is over I think Disney will have a down turn for awhile.

If the guest population numbers were a stable number, ie people who attended Disney parks in 2019, I would think so. But demographics, especially demographics with an international influence, are a differently animal. We have far less experience predicting based on those numbers than one would think. Based on normal US Disney fans, you are probably right. But those vacancies could fill with others. Disney controls AP access and pricing of hotels and admissions.

 

[CalOilerGurl]

No more statements about hot-button social issues. Don't ANNOUNCE a no-more-politics policy, simply stop doing it. Work behind the scenes to come up with some kind of face-saving compromise with the State of Florida on Reedy Creek. Negotiate a golden parachute resignation for Latondra Newton. Announce something splashy and unexpected, like a new X-Men movie, a reimagined SpectroMagic, or Star Wars 10. Anything to get people distracted. Hire Jon Favreau as EVP and Chief Creative Officer.

These are all excellent suggestions: particularly the Favreau one