Disney’s Q2 FY22 Earnings Results Webcast

[Walt d]

Well, their stock is down $2.50 this morning. Maybe investors disagree?

All is down now…

 

[Sirwalterraleigh]

Because theme park attractions take years to build so if they want continued growth they should invest substantially every year in the parks. Ofc it doesn’t always work out that way lol

They don’t care.

That’s what YOU want…not what the stockholders want

Guess who wins?

 

[EricsBiscuit]

They don’t care.

That’s what YOU want…not what the stockholders want

Guess who wins?

I actually disagree. The idea that management always acts in the best interest of the shareholders is a fallacy. If they actually cared about the shareholders then they would be much more careful with the brand and invest much more heavily in the parks. Agency conflicts are a huge problem these days. Managements often care more about their own agendas or their personal gain (for example, keeping the dividends artificially low, which makes the value of the options awarded to them artificially higher) than the best interests of the shareholders.

 

[doctornick]

If the parks are doing well as is, why spend more on them?

Because the parks are doing well because of large CAPEX spends in recent years that have built stuff that are drawing guests in?

 

[Sirwalterraleigh]

I actually disagree. The idea that management always acts in the best interest of the shareholders is a fallacy. If they actually cared about the shareholders then they would be much more careful with the brand and invest much more heavily in the parks. Agency conflicts are a huge problem these days. Managements often care more about their own agendas or their personal gain (for example, keeping the dividends artificially low, which makes the value of the options awarded to them artificially higher) than the best interests of the shareholders.

Right

Let me make this easier for you:

“All that capex” 2017-present…Chapek is an incompetent crap peddler who is in TROUBLE…

…how many new rides do you think you’re getting?

Not really hard here

 

[Sirwalterraleigh]

Because the parks are doing well because of large CAPEX spends in recent years that have built stuff that are drawing guests in?

Are you playing the dumb dumb on this one?

What evidence is there that the capex brought in one single person beyond their standard climb that started 10 years ago?

 

[Sirwalterraleigh]

The stock is heavily oversold as it is right now.

If earnings are good I expect a very strong push.

I wish I had a better read on earnings.

The upside reward here is going to be greater than the downside risk. I will be taking a small position of 25k. I’ll be fine eating the loss if earnings miss.

Lol…want to take another swing at this one, Babe?

…sorry about your 401…by the way

 

[Sirwalterraleigh]

If you want to cut through it…here it is:

Disney may need to tell investors a new story as company warns of softer streaming growth

Disney prides itself on storytelling, but it may need to tell a new story to investors.

www.cnbc.com

 

[MisterPenguin]

I think they'll just roll ESPN+ into the eventual direct to consumer ESPN offering all in one package.

Chapek said that's the plan (when the time is right), so, I think you're right.

Regarding park reservations, how much of it is getting people to pay for tickets sooner before travel days? People not wanting to be kicked out are now buying sooner which essentially gives Disney interest free loans. Is that what Bob means by "exceeding expectations"?

Disney always had people paying way in advance... thanks to the relative shortage of Disney hotels. I grab my weeks worth of reservations a year in advance because just two months away, all the values are booked up.

Park reservations started as a way to comply with COVID distancing protocols. It stuck around because it prevents overcrowding and allows WDW to not have to scramble for surprise surges of guests which means paying a lot of overtime.

 

[MisterPenguin]

No but there seems to always be a rumor they are.

We don't need rumors of CAPEX cuts. The amount of CAPEX spent is in the quarterly reports.

 

[Trauma]

Lol…want to take another swing at this one, Babe?

…sorry about your 401…by the way

Maybe if you actually paid attention to the thread, I posted that I sold my position when I was up 2% premarket. I posted that in real time not after the fact.

I’ve been short spy since $466 so my 401k is doing fine.

Thanks for asking though, Babe.

 

[Sirwalterraleigh]

Maybe if you actually paid attention to the thread, I posted that I sold my position when I was up 2% premarket. I posted that in real time not after the fact.

I’ve been short spy since $466 so my 401k is doing fine.

Thanks for asking though, Babe.

You went for the joke part, huh?

Are you from Minnesota or Wisconsin?

That’s a joke too…by the way.


“Strong push” was the real joke. They’re in crisis and it’s amusing.

Right…it was the masks. Right?

 

[Sirwalterraleigh]

I think they'll just roll ESPN+ into the eventual direct to consumer ESPN offering all in one package.

Espn has been in steep decline for 13+ years.

I’m always puzzled when it’s referred to as “bankable” at this point. It’s not close to what it was and the audience/tech has changed

 

[Sirwalterraleigh]

While of course investors don't want to see Disney's stock going down, it's not like it's going down in a vacuum. The whole market is falling -- it would look worse for Disney if they were treading water or going down while the rest of the market was going up.

Or if their stock is declining at a faster rate than the rest of the market.

Disney stock has fallen consistently over the last 16 months. Does that align with the whole market?

 

[Ldno]

Not a valid option when 50% of visitors on any given day are not onsite resort guests. If 100% of guests are not using the reservation model it fails miserably.

Add to the fact that visitors on site used to take advantage of the old way of getting fast pass reservations in advance than the regular 60 day window in the past, only to cancel their resort reservations and keep the fastpass, Disney cracked down on this on fast pass last days but still, if you don't bundle the tickets with the hotels, you don't have to pay for the hotels until you arrive and I can imagine someway of getting away with this.

 

[Sirwalterraleigh]

Add to the fact that visitors on site used to take advantage of the old way of getting fast pass reservations in advance than the regular 60 day window in the past, only to cancel their resort reservations and keep the fastpass, Disney cracked down on this on fast pass last days but still, if you don't bundle the tickets with the hotels, you don't have to pay for the hotels until you arrive and I can imagine someway of getting away with this.

Those people are pathetic…too be honest

I’m glad that’s done

 

[Ldno]

Those people are pathetic…too be honest

I’m glad that’s done

They ruined it for a lot of people to be honest!

 

[HauntedPirate]

$101.80 after hours, down over $3/share. You can measure the amount of confidence investors have in the crap peddler right now with a thimble.

These numbers should have provided a decent bounce back, but so far it’s still on its downward slide. Maybe tomorrow will change things (I expect it to rebound once the big houses can pump it up) but if this doesn’t move the needle, I’d expect changes. Price hikes won’t save you forever, Bob.

 

[MisterPenguin]

$101.80 after hours, down over $3/share. You can measure the amount of confidence investors have in the crap peddler right now with a thimble.

These numbers should have provided a decent bounce back, but so far it’s still on its downward slide. Maybe tomorrow will change things (I expect it to rebound once the big houses can pump it up) but if this doesn’t move the needle, I’d expect changes. Price hikes won’t save you forever, Bob.

By the numbers, the stock price should go up. But, there are different segments of investors who aren't biting. One group are investors who only (or mostly) want stocks that pay dividends. And Disney isn't doing that again, yet. If Disney would go back to that, its stocks would definitely go up.

Based on all questions about streaming, it now seems investors are getting worried about the loss-leading strategy for streaming -- even tho Disney's streamers seem to be poised to become number one after Netflix's stumble. "Tell me more about the ad tier!" "Tell me how you're spending money for content!" "Tell me about when you're abandoning linear/cable for good." "Tell me you'll reach your benchmark goals."

I've never seen a more streaming-centric quarterly Q&A session before.

 

[Sir_Cliff]

If the parks are doing well as is, why spend more on them?

Indeed. The message from the response to these results is that Disney should be putting all its resources into getting its streaming strategy right. The only concern investors have about the parks is how Disney plans to keep growing profits, which is exactly the sort of feedback that pushes them to reduce spending and find new ways to squeeze money out of customers. This is why I don't know why parks fans would be clapping their hands at this kind of feedback; it only encourages Disney to use the parks as profit engines to fund other business ventures that are more interesting to investors, such as streaming is right now.