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Earlier this month Disney hit its lowest point ($99.47) since the Covid pandemic Crash in early 2020. Like many others after the Covid crash, the stock went on a tear, topping out in March of 2021. In the past year, the high for the stock was in September of last year ($187.57). Disney has faced much backlash over its “Woke” agenda.
Florida Governor Ron DeSantis (R) and the Florida legislature have moved to dissolve Disney’s special tax status, dissolving the Reedy Creek Improvement District, a 1967 deal between the state and the Walt Disney that allows Disney to control most of what goes on at the theme park and its vast landholdings. The law to cancel the 55-year-old agreement was proposed, passed, and signed within four days in April.
In an email DeSantis sent out, he is quoted with saying, “I was elected to put the people of Florida first, and I will not allow a woke corporation based in California to run our state.”
This all came about after Disney vowed to help repeal the “Don’t Say Gay” bill or the Parental Rights in Education bill which was signed into law in March. The law allows parents to sue the school if they believe their student has been instructed on LGBTQ issues inappropriately.
At first, Disney was quiet on the issue, however after it was signed into law and with public prompting, Disney came out strongly against it.
This is not the only challenge Disney is facing, in Q2 Disney reported missing on both EPS (earnings per share) by 9.15% and revenue by 3.94%. The day after the earnings call is when Disney hit its new 52-week low. The stock hasn’t made much of a recovery since then and has been on a downward trend already, even with Q1 beating earlier this year.
On Monday it was reported that the cost of a Disney vacation may be out of reach for your average middle-class family of four. DailyMail reported the average cost of a five-day vacation to Disney was estimated to be $8,480. They also reported on the increase in ticket prices along with the elimination of many free services has made a Disney vacation unattainable on the average median income of $67,521 annually.
Many corporations are starting to see the writing on the wall, such as Netflix which seems to have changed its tune reportedly, laying off leftwing activist employees and pulling the plug on “woke” projects. StateFarm has also dropped its support for LGBTQ “Gender Cool” book program, which provides LGBTQ positive books for young children.
Disney stock may be slightly higher today, but it was reported a few weeks about as the worst performing Dow stock over the past year, down 31.5% as of 4/20:
— Carl Quintanilla (@carlquintanilla) April 20, 2022