fbpx

Disney Stock Continues to Plummet as it Pushes Immoral Content

Photo from IMDb

Disney Stock Continues to Plummet as it Pushes Immoral Content

By Movieguide® Staff

Despite Disney+’s aspirations to hit 230 to 260 million subscribers by 2024, Wall Street fears that recent economic woes will hit entertainment companies hardest.

Wall Street Multiples for the Hollywood mainstay Walt Disney Co. dropped by 41% over in the past year, the lowest number posted by Disney since 2018—barring pandemic-era markets—according to The Wrap.

“The fact that Disney is trading at $110 is stunning, it’s hard to believe,” Jessica Reif Ehrlich, a senior U.S. media and entertainment analyst at Bank of America Securities, said. “As the market collapses, multiples collapse. We are in that period of it being doom and gloom.”

“Disney’s fiscal second-quarter results were largely positive although management commentary on second-half Disney+ net adds are likely to be a key concern among investors,” Ehrlich wrote in a recent report called ‘A Multiverse of Moving Parts.’ “While Disney+ net adds of 7.9 million beat our 5 million forecast, management indicated second-half net adds will not be significantly higher than in the first half.”

The decline in market value is not unique to Disney’s streamer, as Netflix also reported a loss of subscriber growth in Q1.

Read More: What Netflix’s Historic $54 Billion in Market Cap Loss Says About Mature Content

Despite the economic turmoil faced by all companies in 2022, Disney’s recent vocal stance on promoting LGBTQ+ messages in their children’s content also negatively affected their market value.

The Wrap reported: “​​The stock’s declines are partly related to recent entanglements in hot-button social issues such as Florida Gov. Ron DeSantis’ so-called ‘Don’t Say Gay’ bill (which has evolved into a battle over the company’s special tax status in Florida), but the company has also run afoul of the kind of metrics analysts want to see.”

Movieguide® previously noted the potential financial loss that over-sexualization could have on the success of their content, namely major blockbusters like the upcoming LIGHTYEAR:

Disney is no stranger to the No. 1 spot at the box office, with ownership of major franchises like Star Wars and the Marvel Cinematic Universe and an extensive catalog of classics, remakes and original Pixar movies.

Even amid COVID-19 related theater closures, Disney raked in $1.17 billion at the box office in Canada and the United States, according to Statista.

However, after a recent letter from LGBTQ employees working at Pixar Animation Studios, Disney announced that it would restore a same-sex kiss between two female characters that was initially pulled from the upcoming LIGHTYEAR.

The letter of outrage accused Disney of cutting intimate scenes between same-sex characters from their children’s movies.

“We at Pixar have personally witnessed beautiful stories, full of diverse characters, come back from Disney corporate reviews shaved down to crumbs of what they once were,” the letter, issued on March 9, read. “Even if creating LGBTQIA+ content was the answer to fixing the discriminatory legislation in the world, we are being barred from creating it.”

In the past, Disney leadership understood that to cut intimate same-sex affection in their projects opens their movies up to the majority audience.

While Walt Disney Company held its ground to focus on story versus sexuality in the past, LIGHTYEAR could mark a significant turning point.

Despite Wall Street’s wary approach to entertainment, another half of investors believe Walt Disney Co. is worth the risk.

Wells Fargo analyst Steven Cahall notes: “When a company of Disney’s scale focuses its collective resources on a singular objective, we think investors would be remiss not consider taking that execution risk.”

Read More: Study Shows Streaming Still Rules as Consumers Cut Down on Subscriptions

Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.

What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.

You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.