investors vs. some unhappy guest

thomas998

Well-Known Member
Can you explain this chart?
I think the chart is of the Disney share price... but honestly it is a pointless chart to look at since Disney is much more than just amusement parks.... Can't forget that once Disney started buying things like ABC, ESPN and other non-amusement park assets the use of a the stock price as a measurement for the parks became dubious at best.
 

Master Yoda

Pro Star Wars geek.
Premium Member
I do get that but I once posted a thread is Disney spreading themselves to thin, If their main business were the parks and movies do you think they would have the Parks in better condition? Are they so big they can no longer keep a handle on the park operations?
The parks are not their most profitable business by a long shot.

The parks and resorts make about 2.2 billion per year.

ESPN makes 10 billion.

Also, how much a particular section of a company makes is not the the only thing you have to consider. The ROI, or "bang for your buck" is very important. Netting a billion dollar profit from a $100 million investment is better than netting the same billion dollar profit from a $750 million investment.

From what I understand, the parks and resorts have one of the lower ROIs in Disney's portfolio.
 

thomas998

Well-Known Member
Volume of shares trading as in "liquidity" When there's inelasticity the commodity price does not change in response to demand. What you can generally infer from the combination of the data represented both graphs is that the share price of DIS increasing over time with a stable level of trading. August 24 there was a high volume of trading as the stock market dropped 1,000 points on oil price dropping as a result of China's valuation crash, institutional holders moved lots of shares around. So as the markets calmed, volumes again dropped to historical norms and share price began to rise again.

DIS contains lots of other stuff besides the parks. A better parks indicator would be unique admissions +/- in the same weeks of sequential years vs ticket price and mix (single day, multi-day, hopper, AP), that would give you a per person gate revenue average. Then you'd need to add in a per cap comparison of food/beverage/merchandise to get your average revenue per person and then subtract your costs to determine (if any) profit margin.
All that data would easily answer the questions... but that data is unlikely to ever be released to anyone outside a small circle in the Disney empire. Best you can hope to get in the public side is the park attendance which I've seen published by trade publications every so often.
 

ULPO46

Well-Known Member
Oh how I love stocks ( Sarcasm ) feels like it was 5 years ago when Disney shares where selling for 30 bucks a share. But then they began buying Marvel, Lucasfilm, Avatar was announced. Stocks go up and down over the course of the economy and global market place as well as larger IP's, it's just a fact of how the world runs on money. As for the theme parks the price has nothing to do with how the state of the parks are. Indeed this year alone Disney will rake out more than 100 million US Dollars through it's company but, that's just speculating give or take how much Star Wars brings in. So far in presale alone it's broken records.
 

MickeyMomV

Well-Known Member
Ok, just to answer the original question without getting into the who picks on who drama. Personally, I don't think there is any correlation between the investors represented by the graph (top is stock price at a specific point in time and bottom in the volume traded for the same time period) and guest satisfaction. The disney stock price fluctuation has followed overall market fluctuation almost exactly over the time period of the graph. If there was something specific to Disney such as lost revenues from unhappy guests I would expect the price to fall with market price or fall despite market recovery. Truth be told attendance has been increasing despite price increases and reduced promotions. I'm just not sure this chart tells the store the OP was hoping it would.
 

Matt_Black

Well-Known Member
View attachment 115681

investors don't see any problems and the guests have issues with seemingly so many things. Maybe the chart tells the story?

funny-pictures-auto-graph-thing-375754.jpeg
 

JIMINYCR

Well-Known Member
I thought this was well established? It may be heard to realize, but we're just a very vocal minority. Most guests don't care in the slightest about the park quality; they just go because it's Disney.
As long as guests keep coming, which they are, the company sees no problem.
Exactly... we are so minor a voice that they dont notice, guests may complain but they keep coming back. I know many who came home with complaints ( sime were valid, many were groundless) swearing they wouldnt return, but then forgot about their issues and booked return trips the next year. The revenue doesnt dip enough to make a ripple and force changes to the way things are.
 

CaptainAmerica

Premium Member
The parks are not their most profitable business by a long shot.

The parks and resorts make about 2.2 billion per year.

ESPN makes 10 billion.

Also, how much a particular section of a company makes is not the the only thing you have to consider. The ROI, or "bang for your buck" is very important. Netting a billion dollar profit from a $100 million investment is better than netting the same billion dollar profit from a $750 million investment.

From what I understand, the parks and resorts have one of the lower ROIs in Disney's portfolio.
The OP also makes the faulty assumption that internet rambling of hardcore obsessives is a representative sample of overall guest satisfaction. It's not.
 
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CaptainAmerica

Premium Member
I thought this was well established? It may be heard to realize, but we're just a very vocal minority. Most guests don't care in the slightest about the park quality; they just go because it's Disney.
I agree with your general point, but would frame it slightly differently. I think most guests do care about quality, it's just that those folks have no problem with Disney's quality. Their point-of-reference for WDW quality is Lake Compounce or Six Flags New England or Hershey Park. Compared to those places, Disney is pristine.
 

LAKid53

Official Member of the Girly Girl Fan Club
Premium Member
Don't know if anyone said this but that big recent drop was because of ESPN. Disney's worse fear is unbundling of cable packages, in other words you won't have to get ESPN, ABC, Disney channels etc. in your standard cable package. Disney makes a killing off bundling all those channels together. Cord cutting is becoming a real threat in the young generation not the old folks. ESPN is the most expensive channel for cable companies to buy and they are basically forced into it. I for one would drop ESPN and when my kids get older I kill the Disney channels as well. That is Disney's investors fears, al a cart channels.

Doesn't matter all stock related and over the heads of most people on this forum. The Parks have very little to do with Disney's stock price.

Good point. My local Costco is selling a great Roku bundle for under $300. The only cable provider in my town is Comcast. I would happily "cut the cord" now that HBO offers streaming separate from a cable provider - have Hulu, Netflix & Amazon Prime - except for one thing. I'd loose ESPN.

Seeing those charts took me back to my investment and portfolio & security analysis courses in B school. "Class, people who invest in the stock market are in for the long haul. People who churn stocks aren't investors, they're speculators. Understand the difference. Over time, most stocks increase in value. As long as the company fundamentals are sound, don't worry about periodic dips in value."
 

rucifee

Well-Known Member
View attachment 115681

investors don't see any problems and the guests have issues with seemingly so many things. Maybe the chart tells the story?

This is very true, although they are investing a small amount of their income back into the parks now that the other area attractions are becoming much more competitive. That's in my opinion more important to them than pesky guest feedback as their competition has marketing and R&D dollars to actually hurt them financially.
 

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