Disney shares took a hit on Tuesday after CEO Bob Iger announced a surprise profit in its streaming business, but challenges at the theme parks. Despite reporting strong earnings for its second quarter, with revenues increasing to $22.1 billion, stocks fell nearly 10% after the announcement.
Investors reacted nervously to the news of weaker results expected in the upcoming quarter, particularly at Disney theme parks. While revenue at domestic parks was up 7%, driven by higher ticket prices at Walt Disney World, the company warned of a coming slowdown.
For Central Florida, where Disney is the largest employer, this news is concerning. Dr. Duncan Dickson, former Disney director of casting and Professor at UCF’s Rosen College of Hospitality Management, emphasized the local economy’s dependence on Disney’s success.
Disney’s chief financial officer acknowledged a global moderation in post-COVID travel, but expressed optimism for upcoming movie releases like “Kingdom of the Planet of the Apes” and the addition of live sports on Disney Plus.
Despite some setbacks, Disney’s streaming services showed improvement, with losses decreasing significantly from the previous year. However, the company also announced measures to crack down on password sharing.
As Disney stocks closed down 9.51% at $105.39 a share, the local community is keeping a close eye on the impact of these developments on the economy and employment in Central Florida.