Experts Respond After Disney Releases Fourth-Quarter Earnings: ‘[Chapek] Has to Go’
By Movieguide® Staff
Author and host of MAD MONEY Jim Cramer recently joined CNBC to discuss Disney’s losses in their fourth-quarter earnings.
Cramer said that Disney should hold their CEO Bob Chapek to the same standard that ESPN would hold an NFL player.
“If we were on ESPN we would say he’s gotta be fired. That’s pretty cut and dry,” Cramer said. “Because the team is going downhill. There is just no doubt that he has to go. He made it sound like it [the quarter] was just a four-star quarter. Delusional.”
“The losses here are just mind-boggling. When you go over the quarter here, it’s stunning,” he added.
According to CNBC, Disney’s fiscal fourth quarter earnings report resulted in company shares dropping by an astounding 8%.
While Cramer conceded that Chapek cannot control the loss of revenue from theme parks, the TV personality said that Disney’s downward spiral is a sign that Chapek should be fired.
Movieguide® previously reported on investor’s hesitancy to invest in Disney:
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.
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.
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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.
Movieguide® is a 501c3 and all donations are tax deductible.
