Disney Stock News & Earnings

[RivShore]

FYI...

walt-disney-company-webcast

https://finance.yahoo.com/news/walt-disney-company-webcast-annual-180000287.html

 

[manning]

2nd best parks quarter ever - just incredible!

Should be considering cutbacks.

 

[crazy4wdw]

2nd best parks quarter ever - just incredible!

But how long will will the increased earnings continue with the skyrocketing cost of gasoline?

 

[RivShore]

But how long will will the increased earnings continue with the skyrocketing cost of gasoline?

Very good question! Gas is skyrocketing while inflation runs rampant everywhere else. Could very well lead to the dreaded stagflation, then we are all in trouble.

 

[71 Truck]

I am not sure the price of a gallon of gas is going to matter to much to people driving 1000 miles or less.
If a car getting 25 miles to the gallon at $5.00 dollars a gallon, that equals around $200 dollars each way.
Compare that to what it cost to visit Disney even if you are staying off property it is not that much.
It is still an added cost however if you think about it gas at $2.50 a gallon before the big increases the total increase is only $100. dollars each way.
Still in my opinion not very much for a drive to Disney.
Now if gas goes way above $5.00 dollars a gallon all bets are off.

 

[RivShore]

I am not sure the price of a gallon of gas is going to matter to much to people driving 1000 miles or less.
If a car getting 25 miles to the gallon at $5.00 dollars a gallon, that equals around $200 dollars each way.
Compare that to what it cost to visit Disney even if you are staying off property it is not that much.
It is still an added cost however if you think about it gas at $2.50 a gallon before the big increases the total increase is only $100. dollars each way.
Still in my opinion not very much for a drive to Disney.
Now if gas goes way above $5.00 dollars a gallon all bets are off.

All very true when applying logic and math to the issue! But gas prices are a different animal in the public's eye and they have a much bigger psychological impact on people and their spending than the real dollars would indicate. It's something about that price that you see in big lights literally every time you leave your house. And then there is the ugly history of oil price spikes preceding all of the recent recessions - there is much debate on how responsible they are for those recessions.

 

[samsonjs]

I was just telling my sons hygienist we are going to Disney and she said they were thinking about it too but now aren’t sure because of gas prices going up. I think people consider more than just the tanks of gas when they go. They consider that all other things will go up as costs get passed onto them. It spooks them into cutting back.

 

[MouseEarsMom33]

All very true when applying logic and math to the issue! But gas prices are a different animal in the public's eye and they have a much bigger psychological impact on people and their spending than the real dollars would indicate. It's something about that price that you see in big lights literally every time you leave your house. And then there is the ugly history of oil price spikes preceding all of the recent recessions - there is much debate on how responsible they are for those recessions.

I think it may have more of an impact of who will fly vs. drive. Gas's prices will likely raise airfare and even with higher prices, it may be a lot cheaper to drive.

 

[Aluminum Falcon]

I am not sure the price of a gallon of gas is going to matter to much to people driving 1000 miles or less.
If a car getting 25 miles to the gallon at $5.00 dollars a gallon, that equals around $200 dollars each way.
Compare that to what it cost to visit Disney even if you are staying off property it is not that much.
It is still an added cost however if you think about it gas at $2.50 a gallon before the big increases the total increase is only $100. dollars each way.
Still in my opinion not very much for a drive to Disney.
Now if gas goes way above $5.00 dollars a gallon all bets are off.

I think that the price of gas doesn't only affect customers at the tank, Disney will either have to increase prices or decrease earnings. Think about it, gas going up means that the cost to produce anything is going to go up as well, a small example would be a Mickey Plush. It is going to have a higher cost of energy to manufacture it, on top of that shipping costs are going to go up as a result as well, both of those costs will be passed onto Disney and they will need to make a decision if they are going to pass the cost onto their customers or eat the losses.
It's been said that anything you pay for has "Gas" somewhere in it, so expect pricing to increase everywhere

 

[71 Truck]

I think that the price of gas doesn't only affect customers at the tank, Disney will either have to increase prices or decrease earnings. Think about it, gas going up means that the cost to produce anything is going to go up as well, a small example would be a Mickey Plush. It is going to have a higher cost of energy to manufacture it, on top of that shipping costs are going to go up as a result as well, both of those costs will be passed onto Disney and they will need to make a decision if they are going to pass the cost onto their customers or eat the losses.
It's been said that anything you pay for has "Gas" somewhere in it, so expect pricing to increase everywhere

You are correct. Some people do not understand how intricate oil is involved with just about everything grown,manufactured,driven or flown. The increased cost of a barrel of oil is on top of the increases we have seen across all sectors of the economy. Things like increase labor cost, supply shortages and labor shortages will all contribute to price increases and Disney is no exception.
They have already increased prices in past years like just about every business around the world has had to.

So when someone says "when did that become so expensive" they have to take into account everything involved bringing that item or service to market.
With all that said Yes Disney will have to again increase costs to the guest for everything to maintain the profit margin that is expected from a company as large as Disney, and it is not just the parks, it is every division of the Walt Disney company.

We should refrain from this turning into an argument about corporate greed, all public companies answer to their stock holders and are expected to make as large a profit as they can.
It is up to the consumer not to do business with companies they do not agree with.

 

[Sue&Ken]

Good articles to help decide if I should buy at this time.

 

[RivShore]

We should refrain from this turning into an argument about corporate greed, all public companies answer to their stock holders and are expected to make as large a profit as they can.
It is up to the consumer not to do business with companies they do not agree with.

Very true statement there. I would add that this thinking that corporations are all about greed and profit and only greed and profit are just not critically thinking about the full picture - you can not have a sustainable business without (1) satisfied customers willing to pay what you are charging again and again, (2) satisfied employees willing to accept what you will pay them and provide decent service to your customers, and finally that leads to (3) profits that can be shared with shareholders so they are willing to invest further...which leads to more customers, more employees and more profits...what a logical system, I wonder what they call it?

And compare that to any government run "business", say the DMV, of those 3 things they have to kind of worry about number 2...and that's about it.

That being said there are certainly the corporate raider types on WS that are just after the quick buck, sustainable company be damned. Those types have given real companies, real CEO's, and the system itself a bad name.

 

[hhisc16]

After buying 5 shares in Oct at 170 and watching the DIS tank since then, I was willing to take a loss at 155 on 4 shares. (Kept one share to be a shareholder at least.)
What a mess.

 

[Aluminum Falcon]

After buying 5 shares in Oct at 170 and watching the DIS tank since then, I was willing to take a loss at 155 on 4 shares. (Kept one share to be a shareholder at least.)
What a mess.

After buying 5 shares in Oct at 170 and watching the [INSERT COMPANY NAME HERE] tank since then, I was willing to take a loss at 155 on 4 shares. (Kept one share to be a shareholder at least.)
What a mess.

i think i fixed it for you haha, the market is in turmoil, it will come back haha

 

[New Mouse]

After buying 5 shares in Oct at 170 and watching the [INSERT COMPANY NAME HERE] tank since then, I was willing to take a loss at 155 on 4 shares. (Kept one share to be a shareholder at least.)
What a mess.

i think i fixed it for you haha, the market is in turmoil, it will come back haha

Disney was in worse turmoil than your average company.

 

[kc51570]

After buying 5 shares in Oct at 170 and watching the DIS tank since then, I was willing to take a loss at 155 on 4 shares. (Kept one share to be a shareholder at least.)
What a mess.

Generally investors are in it for the long term gains. Not a quick flip.

 

[Aluminum Falcon]

Disney was in worse turmoil than your average company.

They just had one of their best earning reports, so I think that narrative is a little overplayed. They’re doing just fine

 

[New Mouse]

They just had one of their best earning reports, so I think that narrative is a little overplayed. They’re doing just fine

Wall Street is down on Disney. You can't even argue that.

 

[AvidDisReader]

They just had one of their best earning reports, so I think that narrative is a little overplayed. They’re doing just fine

If Disney is just fine, why have they not started paying a dividend again? I would be very careful buying Disney stock right now.

 

[RivShore]

If Disney is just fine, why have they not started paying a dividend again? I would be very careful buying Disney stock right now.

It may be a while before we see a dividend, they are still recovering from the pandemic and are pouring free cash flow into streaming. As far as buying now, there is a whole lot of uncertainty but if your planning to hold for 10+ years, what does $10-20 each way really matter?