News Josh D’Amaro Named Next CEO of The Walt Disney Company

[JoeCamel]

Really? Underperform the market sure, but loss?

The stock, even with the recent drops is higher than the day Iger came back in 2022 or are we grouping Iger and Chapek into one?

Loss compared to what an index would have earned

 

[JD80]

Name that stock:

Spoiler

Comcast, Intel, Netflix, Disney, SONY, Amazon

 

[JD80]

Disney is up 3% today, Apple is down 2.2% and Netflix is up 1.3%

I guess the narrative is.. whatever.

 

[JD80]

Loss compared to what an index would have earned

Kind of a dumb thing to compare it to. You are comparing a single company against the averages of all other companies in the index. Especially when Disney is not in a significant growth segment (AI/Tech). Entertainment, which is still going through a massive shakeup, is never going to provide returns like AI companies right now.

 

[JoeCamel]

Kind of a dumb thing to compare it to. You are comparing a single company against the averages of all other companies in the index. Especially when Disney is not in a significant growth segment (AI/Tech). Entertainment, which is still going through a massive shakeup, is never going to provide returns like AI companies right now.

There are manufacturers, health care and the rest of what makes our economy tick in the index if they average better than Disney does alone for years it leads me to conclude Disney did less well than the index. Keeping to a sector ignores opportunity

 

[BrianLo]

There are manufacturers, health care and the rest of what makes our economy tick in the index if they average better than Disney does alone for years it leads me to conclude Disney did less well than the index. Keeping to a sector ignores opportunity

It did, but its entire basket of peers significantly underperformed.

It always comes back to the collapse of cable and a smaller secondary story of the streaming valuation bubble. If we could lop that off then I’d for sure say there are other one third peers who have done significantly better this last ten years. Royal Caribbean being a major one.

 

[JoeCamel]

It did, but its entire basket of peers significantly underperformed.

It always comes back to the collapse of cable and a smaller secondary story of the streaming valuation bubble. If we could lop that off then I’d for sure say there are other one third peers who have done significantly better this last ten years. Royal Caribbean being a major one.

Seems the last 5 years Bob went all in on streaming, tracks with the stock performance

 

[JD80]

Seems the last 5 years Bob went all in on streaming, tracks with the stock performance

They didn't go all in on streaming. The had a focus on it, but I wouldn't say all in at all.

 

[JoeCamel]

They didn't go all in on streaming. The had a focus on it, but I wouldn't say all in at all.

Bob bet the future of the company and his legacy on it

 

[Dranth]

Loss compared to what an index would have earned

Got it. Seems like a bit of an odd comparison.

There are manufacturers, health care and the rest of what makes our economy tick in the index if they average better than Disney does alone for years it leads me to conclude Disney did less well than the index. Keeping to a sector ignores opportunity

That isn't the typical reason it is brought up on the forum though. Instead people try to use it as a means of saying Iger is bad forgetting that most of the things that improve the stock are bad for fans/consumers. Especially short term.

 

[AidenRodriguez731]

There are manufacturers, health care and the rest of what makes our economy tick in the index if they average better than Disney does alone for years it leads me to conclude Disney did less well than the index. Keeping to a sector ignores opportunity

Yeah I suppose Disney should have gotten into the healthcare business

 

[JD80]

Bob bet the future of the company and his legacy on it

But he didn't? The company was focused on the launch - namely with the FOX acquisition. But the company was investing tons in to the parks leading up to D+ launch in 2019. Domestically Pandora, TSL, SWGEx2 amongst other projects and along with the Disney Wish.

Not to mention all the movie franchise making records in 2019 with 8 of the top 10 movies that year all of them billion dollar boxoffices.

Igers legacy will not be D+, it'll most likely be international parks, acquisition of Pixar, Star Wars and Marvel for better or worse.

 

[JoeCamel]

But he didn't? The company was focused on the launch - namely with the FOX acquisition. But the company was investing tons in to the parks leading up to D+ launch in 2019. Domestically Pandora, TSL, SWGEx2 amongst other projects and along with the Disney Wish.

Not to mention all the movie franchise making records in 2019 with 8 of the top 10 movies that year all of them billion dollar boxoffices.

Igers legacy will not be D+, it'll most likely be international parks, acquisition of Pixar, Star Wars and Marvel for better or worse.

Remember that Bob refused to invest in the parks for a decade claiming they were a mature business not worthy of investment and growth?

 

[Ayla]

Remember that Bob refused to invest in the parks for a decade claiming they were a mature business not worthy of investment and growth?

Yep. There are some really short memories around here.

 

[Stripes]

Remember that Bob refused to invest in the parks for a decade claiming they were a mature business not worthy of investment and growth?

What decade was that? I encourage you to post the quote where Bob claimed the parks were a mature business, unworthy of investment.

 

[Disstevefan1]

But he didn't? The company was focused on the launch - namely with the FOX acquisition. But the company was investing tons in to the parks leading up to D+ launch in 2019. Domestically Pandora, TSL, SWGEx2 amongst other projects and along with the Disney Wish.

Not to mention all the movie franchise making records in 2019 with 8 of the top 10 movies that year all of them billion dollar boxoffices.

Igers legacy will not be D+, it'll most likely be international parks, acquisition of Pixar, Star Wars and Marvel for better or worse.

My analogy about owning an IP VS. licensing an IP is like owning VS. renting a home.

When you buy a home, it’s yours to do as you wish for better or worse.

When you rent a home, you are to keep it up to the landlords standards and expectations.

I wish Iger had never purchased Lucasfilm, Marvel or Pixar.

 

[Gringrinngghost]

"I'm not wild about the fact that it is so expensive now to go to Disneyland or Walt Disney World. I'm not wild about the fact that it's harder than ever to have everyone be a VIP at a Disney park because they're selling certain things..."

Well Mike, your hand chosen successor did that one.

“The company was willing to sacrifice some theme park attendance in exchange for higher revenue and better guest experience” — Robert Iger in 2016

“In our zeal to grow profits, we may have been a little bit too aggressive about some of our pricing. I think there’s a way to continue to grow that business, but be smarter about how we price so that we maintain that brand value of accessibility.” — Iger in 2023

Given the last price increase under Eisner in January of 2005 raised single day ticket pricing to a whopping $59.75. Since Iger took over, he’s mainly been behind the increase of a single day from 132.636% for the cheapest MK ticket to a 249.791% increase for the most expensive MK ticket.

While yes, under the time of Chapek, we saw a price increase of $30; under Iger it was a cumulative $119.25.

I’ll put it this way, since June of 1982 for a single day ticket with no addons:
Starting Point: October 1982: $9.25
Time taken to cross $25: 4 years and 2 months (December 1986)
Time taken to cross $50: 15 years and 9 months (September 2002)
Time taken to cross $75: 5 years and 11 months (August 2008)
Time taken to cross $100: 7 years and 1 month (September 2015)
Time taken to cross $125: 2 years and 5 months (February 2018)
Time taken to cross $150: 1 years and 1 month (March 2019)
Time taken to cross $175: 3 years and 2 months (May 2022)
Time taken to cross $200: 3 years and 5 months (October 2025)

A premium AP during the last Eisner oversaw price increase was $515. They are now $1,629. Or if you will a price increase or $1,114 or 216.311%. During the time of Chapek as CEO, we saw a $115 price increase. So under Iger, the APs went up by $999

I’ll throw this gem in:

 

[Vegas Disney Fan]

Igers legacy will not be D+, it'll most likely be international parks, acquisition of Pixar, Star Wars and Marvel for better or worse.

I agree with this, ironically that leaves his legacy largely in the hands of those who’ll come after him.

Had he managed the big 3 assets better he could have secured his legacy before he even retired, unfortunately Star Wars has been horrible, Pixar is on a downward trend, and the once unbelievably successful Marvel is on life support. I think that’s his current legacy, he set up the company for future success, then completely bumbled that potential.

The best hope for his legacy now is someone comes in and fixes his mistakes and he gets the credit for setting up the foundation for that success.

 

[mysto]

Loss compared to what an index would have earned

Comparing individual stocks to various indexes is a tool that is widely used by financial analysts.

I support JoeCamel on this one, I can't imagine anyone who has ever invested would argue against this common practice. Inconceivable!

 

[mysto]

While I'm at it, if people are going to throw around prices going back 30 years then all numbers have to be adjusted for inflation. The dollar doesn't have one value.