Why I am Long Term Bearish on Disney Stock

by | November 6, 2023

My whole association with Disney’s brand has ruptured and I’m positive I’m not the only parent who would be reticent to introduce any newer Disney material to my kids.

Growing up Disney was everything

There also was a much bigger moat, to compete with Disney creatively would cost a ton. 

All they had to do was produce great wholesome content, and ingrain the characters into childrens’ lives so they would demand you’d buy it for them at the Disney Store and visit the theme parks. 

Then, when competition slowly arrived, they used their mighty purse strings and bought them out. I’m talking about the billions spent on Lucas Films and the Marvel comic Empire, not to mention Pixar Studios. 

They had giant money printing press. 

But now things have changed. 

  1. they went woke. Kathleen Kennedy has ruined the Star Wars brand, the Indiana Jones brand suffered mightily. And Marvel movies haven’t been performing as well. 

This is largely due to wokeness they have inserted. It’s simply destructive story telling, and what few, if any people want to see in the theaters.

I used to get excited, when a new Star Wars movie would come out. No longer, I simply don’t care. They’ve lost me. 

Pretty much same with Marvel.
My whole association with Disney’s brand has ruptured and I’m positive I’m not the only parent who would be reticent to introduce any newer Disney material to my kids.

Furthermore, the moat around content creation is disappearing quickly. I mean, what you can shoot on your iPhone today is pretty amazing, and AI will open up infinite new possibilities, bringing down the cost of content creation within reach for anyone.
Further, YouTube, Twitter and Rumble are competing for the same eye balls pretty dramatically. The entertainment pie is being sliced and diced into infinite peaces. 

It’s going to become harder and harder to have hits, as well, and this is important, bringing children into the Disney orbit. My kids watch YouTube + Ryan’s World and we will only show them Disney movies from the pre-woke era. 

Revenues for Disney are going to be harder to come by. Demand for the theme parks will soften, competition is revving up quickly, and Disney has destroyed a lot of its brand cache. 

For these reasons, I’m very bearish on Disney in the macro sense. 

0 Comments

Connect with us

Subscribe

Popular posts

Featured post

Latest posts

Recharge Freedom
Stay Updated

Stay Updated

Because You Save for a Sunny Day, not a rainy one. 

You have Successfully Subscribed!

Share This