Walt Disney Company Stocks Fall Once Again Due to Concerns Parks May Not Reopen Until 2021

Jessica Figueroa

Updated on:

Walt Disney Company Stocks Fall Once Again Due to Concerns Parks May Not Reopen Until 2021

Jessica Figueroa

Updated on:

Walt Disney Company Stocks Fall Once Again Due to Concerns Parks May Not Reopen Until 2021

The Walt Disney Company has seen a whirlwind month within the market, getting out-performed by Netflix only to gain advantage shortly after with the White House’s announcement for a phased reopening of businesses to potentially begin in May. However, investors haven’t fully regained hope in the company, with UBS analyst John Hodulik claiming that Disney is currently in “the eye of the storm” in terms of recovery.

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Disney stock has received its third downgrade so far in April, with shares down by 2.45% this morning.

According to Hodulik, while all aspects of Disney’s business faces risk from the COVID-19 outbreak, the parks are among the most impacted. He anticipates that the company won’t be able to reopen its parks until Jan. 1, 2021, with restrictions on parks operations and attendance spanning far beyond that.

Hodulik commented on the need for social distancing and other health protocol:

“[T]he economic recession plus the need for social distancing, new health precautions, the lack of travel and crowd aversion are likely to make this business less profitable until there is a widely available vaccine.”

He believes the parks will resume full operation in about 18 months, coinciding with the earliest available vaccine for COVID-19.

There are also some concerns about the company’s media business, with ESPN scrambling to salvage sports leagues and box offices still trying to figure out new release strategies for movies while theaters remain shuttered worldwide. The parks represent 27% of the company’s revenue, while the film and television studios account for 18%, according to Credit Suisse. Disney is still facing an uphill battle as the company has accrued $13 billion in debt and credit agreements in order to mitigate the financial effects of closing down its parks and film studios.

Source: MarketWatch

15 thoughts on “Walt Disney Company Stocks Fall Once Again Due to Concerns Parks May Not Reopen Until 2021”

  1. While the numbers don’t lie, I always take what these analysts say with skepticism. I feel most of them are just trying to promote themselves and predictions to bolster their careers and be able to say “I was right’. Here in California while I’m not a fan of Gov. Newsome (although I think he has done an admirable job at this time), I’m going with what he is saying about pointing to around August of large venues being able to begin to open back up.

  2. These analysts all have agendas, as in, is he or his company short or long disney stock? Also, he is essentially saying that they can’t open fully till we have a vaccine. That discounts any other ways to mitigate COVID-19 such as medicines, etc. It also essentially says “we will not find out anything new about COVID-19 for 18 months”.
    What if the true mortality rate ends up being adjusted down to .01%? What if it has been spreading through the U.S. for many months already and tens of millions have already had it and recovered?
    Give it 3-4 weeks and we’ll likely have a very much clearer picture of when the parks can open.

  3. Not opening until 2021 is absolutely absurd. If they’re stupid enough to keep it closed until then then Disney’s deserves to fail.

  4. I’m still hoping I can go in November, but my flight is refundable and my DVC points can be “put back” if I have to cancel. I won’t go if not enough attractions will be open and if it’s still dangerous out there, but otherwise I’ll do what’s safe even if I have to stay home for the big 5-0. I can visit the parks virtually with YouTube if necessary. Still…I don’t like guesstimate articles from economists trying to predict what NO ONE really knows for certain.

  5. The wheels are falling off this Corona fiasco and studies out of Stanford have YET AGAIN slashed death tolls and fatality rate. Each day that passes esposes more hospitals classifying ALL deaths as Corona to collect Federal emergency funds and more studies indicating this is nearly equivalent to seasonal flu…

    These politicians are all playing “who goes first” Georgia kicked it off weeks ago with beaches, then today announced reopening resturants, some entertainment and retail through next Monday. Florida followed with some beaches then South Carolina, Tennessee and Texas have also laid plans to begin reopening next week.

    Nothing will happen. No explosive case load, NONE of the emergency FEMA hospitals ever got used, no one even came CLOSE TO running out of ventilators…. all the while strangers are still cooking for thoudands of people getting take out, we all share the same dirty gas pump, most people dont wear masks or social distance, we shop at Lowes and Walmart like nothing has changed and magically we’re “keeping the curve flat”.

    There is no curve. Once business leaders and the general public figure out this fear mongering being drilled into us 24×7 by the media is not the crisis they want it to be, our politicians will have no cboice but to open everything up.

    Florida depends on Universal and Disney. No amount of printed money can replace a ln actual economy until 2021.

    Both will reopen SOON with some rediculous feel-good measure to make people feel safe, just like their bag security entering the parks.

    I love Disney second only to my family. Have faith, friends.

    We’ll be back this summer!

    • You are astoundingly misinformed. But I suppose anyone who would write the word “rediculous” shouldn’t be given much credence. COVID-19 is FAR worse than the seasonal flu. Imbeciles who continue to spread that fallicy are the true problem in this country. The death rate is much higher. People throw around the number of deaths from seasonal flu, not taking into account those numbers are for a year, not for the four months we’ve been dealing with this pandemic. Approximately 56k die of the flu each YEAR. Already more than 40k have died of COVID. Hospitals have run out of supplies. Human beings have died in hallways and waiting rooms because there weren’t any rooms available. Field hospitals are absolutely being used. Refrigerated trucks are being stacked with people because there’s no room left in morgues. This DOES NOT HAPPEN due to the seasonal flu. Educate yourself before you start blathering. All you’re doing is perpetuating stereotypes of stupidity.

      MOST people are doing social distancing because they are intelligent enough to understand it, decent enough human beings to care about the health and well-being of others, and of good enough moral and patriotic fiber to follow laws and regulations put in front of them without arrogantly declaring themselves experts in a topic they do not understand. The reason the numbers are falling is because people are staying at home, washing their hands, and learning to function with these restrictions. Food does not carry the virus, so people cooking for others is a non-issue. Washing hands and using hand sanitizer manages issues like pumping gas — which people are doing far less because they aren’t going out as much. How can you not comprehend that it’s not that the problem is getting better so it proves there was no problem and we shouldn’t have to have restrictions, but that the restrictions have made the problem get better? Did you miss the basic school lessons of cause and effect?

      Just like in other countries, if businesses open too soon and people start acting like blithering idiots who can’t possibly live without their chain restaurants and consumerism, there will be a spike of cases. There will be a spike of deaths. You are not special. You are no different than the millions of others dealing with this virus. And our country is dealing with it far, far worse than other countries because of people like you being arrogant, self-absorbed, self-important jerks not following guidelines and causing extensive infections and deaths.

    • By your logic all viruses are the seasonal flu… perhaps you should join the protesters that are catching it from each other…

    • Great reply and you are correct. The narrative around this virus is falling apart. Wasn’t it supposed to be our “Pearl Harbor” moment a few weeks ago? Stoke fear, take control, and let the sheep fall in line. I am glad to see these protesters standing up for their constitutional rights.

    • Right on the mark, Scott! Citizens and governments are slowly waking up to the reality of this ‘fiasco’. Well said!

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