Agent H
Well-Known Member
Hollywood studios is too far gone and honestly I think that’s for the best
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DHS Monster Inc Land Coming to Disney's Hollywood Studios
- Thread starter wdwmagic
- Start date
Jrb1979
Well-Known Member
That's the only park I'm happy with the direction it's going. I hate what's happened to Epcot and I'm not a fan of what they are doing to MK
lazyboy97o
Well-Known Member
Whether or not is was planned is absolutely important because we’re talking about a project that has not yet started construction. The decision to phase those projects came much later.
They’ve released three pieces of art for the land and even shown of the track layout of the coaster. Compared to a brief mention.
They could have done it when they first made the brief reference to the show.
eddie104
Well-Known Member
The only thing I hate with the MK is what they did to Splash Mountain otherwise I’m happy with the upcoming projects.
Tha Realest
Well-Known Member
Jungle Cruise
lazyboy97o
Well-Known Member
Arguing the pros and cons of whether or not a penny sales tax should be levied is politics. Stating that it will raise the price of goods by 1% is not politics.
GoofGoof
Premium Member
That was a one day drop. The stock is up 35% since the announcement. The consensus amongst sell side analysts after the announcement was overwhelmingly positive. This is a pretty good summary from the time from Seeking Alpha
Disney levels off as analysts see upside in new Parks investments
Sep. 20, 2023 10:52 AM ETThe Walt Disney Company (DIS) StockNFLXBy: Jason Aycock, SA News Editor23 Comments
LordRunar/iStock Unreleased via Getty Images
Wednesday brought the first trading day since Walt Disney (NYSE:DIS) investors reacted to news of a nearly doubled investment in its Parks unit by sending the stock almost 4% lower.
And despite concerns about company debt and heavy cost outlays ahead, early analyst reaction to the move so far is coming out positive. Disney (DIS) stock was up 0.7% in Wednesday's early going.
Disney (DIS) said it would accelerate 10-year spending on its Disney Parks, Experiences and Products division to about $60B, nearly twice what it was in the previous 10-year period.
That offers "60 billion reasons to invest" in the stock, Seeking Alpha analyst and Investing Group leader Daniel Jones said.
The move runs counter to a company initiative to cut costs and reduce debt, and Disney (DIS) has a hefty price ahead to acquire the rest of Hulu, he said, but "management has demonstrated time and time again that these investments generate fantastic returns."
The Parks unit is most vital to success over the long run, he argues -- accounting for just 36.7% of overall revenue in this year's first three fiscal quarters, but 77.3% of profits.
Parks attendance in 2022 marked a "massive turnaround" from COVID-19 pandemic lows of 2020, and Disney is affiliated with eight of the globe's top 10 resorts by attendance. Revenue has hit records, meanwhile, thanks to the company's pricing power, he noted.
And the significant ramp in investment over the previous 10 years has paid off, he argues: "As a result of growing aggregate investment by a factor of three, operating income quadrupled."
Elsewhere, Morgan Stanley absorbed the Parks investment news and reiterated its Overweight rating, noting a continued attractive risk/reward.
"We see the Parks & Experiences businesses (75% of F23 segment [operating income]) as uniquely attractive in long-term growth potential, scale, and returns, warranting a low double-digit EBITDA multiple," analyst Benjamin Swinburne said. "By implication, at current DIS share prices, Disney's media assets in aggregate are valued at roughly $50B, less than 1x sales" -- or about 30% of Netflix's (NFLX) current enterprise value.
Parks capital expenditures will likely scale up gradually, leaving "no material impact" to free cash flow expectations this year and next, he said, and capital intensity should remaining similar to the previous decade.
As for capacity expansion, Disney can potentially double its footprint at Disneyland over time and is only using 30% of its land at Disney World now, along with more expansion capacity at international parks. Disney believes its global total addressable market is about 700M consumers, vs. the current 100M annual visitors it sees, Swinburne noted. He has a price target of $105.
Wells Fargo is staying Overweight, noting the bullishness on Parks and Cruises but adding that investors wanted to see more guidance from the company.
"While DIS is bullish on the Parks [opportunity], investors left the event a bit frustrated on what it all means for returns," analyst Steven Cahall said. "The spending guidance is out there, but it's unclear if Parks earnings growth should accelerate alongside spending growth. If earnings stay unchanged then higher capex = lower Street [free cash flow]," explaining the stock's downward reaction, he said.
As for ESPN's direct-to-consumer future: Disney's (DIS) new carriage deal with Charter "cements" that linear will always remain even as ESPN works to "decipher" the addressable market and average revenues for a streaming strategy. Meantime, ratings are strong on ESPN and sports overall, he said.
And while Parks value is good for the stock long term, "we think for DIS to break out near term it requires getting Hulu sorted and providing clarity on ESPN's future ... our bullishness remains content & DTC." Wells Fargo has a price target of $110, implying 33% upside.
Jrb1979
Well-Known Member
I have no issue with any of the new attractions coming. It's the placement of them that continues to be the problem. I feel cars should have went in Hollywood Studios and replaced Indiana Jones. Leave Frontierland as is and focus on fixing TomorrowlandThe only thing I hate with the MK is what they did to Splash Mountain otherwise I’m happy with the upcoming projects.
GoofGoof
Premium Member
Are you saying you don’t think there will be a Monsters show at all because they didn’t include a glimpse of the show in the concept art? The outside of the theater is clearly still there in the art and they announced (in words) replacing MV3D with a new theater show. I’m fairly confident there will be a Monsters show. No way to say 100% certain of course.
lazyboy97o
Well-Known Member
No, I’m saying this idea that the show is somehow running ahead of everything else is completely without evidence. It is a complete reversal of what was expected based on the evidence. It is something concocted in the past to few days to try and excuse Disney closing the whole area well before is necessary.
Agent H
Well-Known Member
I remain skeptical on the cars thing especially since they could have filled the river in from the current Tom Sawyer rafts to villains land and that way you have a much better way to get to Tom Sawyer island just park the river boat at the landing and there you go but I’m still positive on everything else from d23
GoofGoof
Premium Member
Nobody said the show opening first was definitely the plan. It was just speculation from 1 poster which I happen to think could be a possibility. I don’t know if the original poster was saying it to try to excuse Disney for closing the whole land earlier than needed. Can’t speak for him.
I will say this, if they are only closing the land early to save costs with no plan to actually work on construction in the font half until after the Door Coaster is further along then why the 3 different levels of construction walls at 3 different dates? According to the Blog Mickey post the first construction walls in March will be around the gift shop then in May will expand to include Mama Melrose and June the whole land. Why not just wait until June and put up the construction wall across the whole land and let it sit?
Agent H
Well-Known Member
THIS I was under the impression that muppets would not close until 2026 but I’m not immediately going to jump to conclusions there has to be a logical reason
GoofGoof
Premium Member
It could be to cut operating costs now, it could be to spread construction costs over different years, it could be to re-open the front half of the land earlier. It could be none of those reasons or even all of those reasons. Nobody here knows for sure but it’s fun speculating.
lazyboy97o
Well-Known Member
Nobody is saying the area will sit dormant. We’re saying that dragging things out is part of the cost control.
TheCoasterNerd
Well-Known Member
JD80
Well-Known Member
Uh, I don't think the DHS park executives are going to close a 3d movie show in a park that has is already short on capacity for cost savings. They are doing it for other reasons. How much do you think they are saving operationally here? More likely than not, closing it impacts profits because it's taking inventory out of LLMP.
This whole argument is based of the guess work and cynicism. Time to get a reality check.
This whole argument is based of the guess work and cynicism. Time to get a reality check.
MagicHappens1971
Well-Known Member
Ehh, I don't want to buy into the cynicism, but it honestly makes sense, the Villains show and Mermaid are both coming online at the same time. It's not a stretch to say that they are shuttering it early for no reason other than to save money. With that being said, we may start to see site work occur earlier than we originally thought.
lazyboy97o
Well-Known Member
Here’s your reality check. The world’s busiest theme park has abandoned retail, dining and attraction space.
To easily highlight all the stores, restaurants, attractions and shows The Magic Kingdom used to have, I thought it would be easiest to go through old guidebooks (when they were books, not just fold out maps) land by land, to illustrate how minimized the park experience in comparison is today. And that's ignoring the changes in prices and booking policies...
Starting with Main Street:
You'll notice right away that Main Street had more attractions. The Walt Disney Story was a precursor to One Man's Dream...
Starting with Main Street:
You'll notice right away that Main Street had more attractions. The Walt Disney Story was a precursor to One Man's Dream...
