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Is There Growth Trouble for the House of Mouse?

By Jose Najarro – Sep 23, 2021 at 9:30AM

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Disney's stock price dropped after comments from the CEO about a potential slowdown in growth.

Today's video focuses on recent news affecting Disney (DIS -1.04%) and comments made by its CEO Bob Chapek during a virtual question-and-answer session on Sept. 30. Here are some highlights from the video. 

  1. Disney has been affected both negatively and positively by COVID-19 lockdown restrictions. Disney's parks, cruises, and other live experiences have seen a downturn in revenue compared to their peak before the pandemic. At the same time, Disney has seen tremendous growth in its livestreaming service, Disney+. 
  2. During the Q&A session, Chapek mentioned that the delta variant has caused production delays, impacting movies and TV show release dates. Investors might be worried that the slowdown in original content from Disney+ could cause consumers to unsubscribe or deter new subscribers from joining the platform.
  3. On the bright side, Disney could have a strong future. With lockdowns easing in the U.S., it can generate more vital revenue from theme parks, cruises, and other live experiences than last year. Disney's goal for Disney+ is to have 230 million to 260 million subscribers on the platform by 2024, with the most recent earnings showing roughly 116 million.    

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Sept. 21, 2021. The video was published on Sept. 21, 2021.

Jose Najarro owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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