close
Edit Metric
Company
Value
Source
Source URL
Notes
Cancel
 
close
Edit  |  History
Details
Company:
Value :
Source:
Source URL:
Notes:
 
Feedback  |  FAQ
Get involved

Add a New Bears Reason

Company: Walt Disney Company (DIS)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
1 votes

edit When the going gets tough, advertisers scale back and consumers stop flocking to theme parks

The global economic downturn has the potential to do a lot of harm to Disney. As reported in the company's fourth quarter, advertising revenue and hotel bookings are sharply down. Attendance at its theme parks so far is down about 1% and bookings for the first two quarters of 2009 are down just under 10% from last year. Media revenue was flat in the fourth quarter due to lower advertising revenue at its broadcast unit and competing coverage from the US Presidential election.

Increases in fuel prices have increased operating costs at Disney's theme parks and the Disney Cruise Line.

(100 character max) Cancel
0%
agree
0 votes

edit Live action studio

Disney's live action studio did very poorly in 2005, with a series of flops that cost the company hundreds of millions of dollars. While a hit could help generate revenue in all the other business segments, the market is increasingly crowded with competition. The computer-animated film sector, for instance, is nearing saturation, with at least 15 major movies in 2006 produced by numerous studios.

(100 character max) Cancel
0%
agree
0 votes

edit Disney is vulnerable to piracy

Like other media companies, Disney is threatened by piracy of their valuable content. While the company has tried to control this by providing some video-on-demand online (of course, with advertisement), this is not a solution to the problem.

(100 character max) Cancel
0%
agree
0 votes

edit Exposure to macroeconomic conditions

Disney has extensive tourism-related business and assets, which are very exposed to macroeconomic conditions. In addition, ad sales, a huge part of Disney's revenue stream, would also be negatively impacted by an economic downturn.

(100 character max) Cancel
The Shelf
Contributions
Help make Wikinvest better! Learn how to get involved. And create an account to build your reputation.
Did you know…?
Bookmarks
Worried about pump and dump?
We review changes
for stock spam
Want to make Wikinvest better?
We need your help,
contribute today
Do you write software?
We are recruiting
the best engineers
Like Wikinvest?
Spread the word —
Tell your friends!
Wikinvest © 2006, 2007, 2008. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki