Well the stock market doesn’t agree!
Disney’s competitors are considered to be companies such as Universal. They both are massive content creators and they both operate amusement parks. Universal trades at 14x earnings while Disney trades at 39x earnings.
There are two ways at looking at this Disneys profits are falling and the market has not repriced the stock or its potential for earning is rising. The former would only be true if it was a short term thing but Disney’s p/e has consistently been above 30 for the past decade.
So it’s the other thing. Disney you s not seen as failing! Rather it’s revenue growth potential is being priced in!
As for the decision to not relocate some of its California based employees — it seems that the new CEO listened to his staff who by a wide margin indicated that they had little appetite for moving to Florida!
He listened to his employees!
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