Disney’s Grand Plan For Theme Parks, Cruise Line Isn’t Budging Wall Street — Or Retail Sentiment

Walt Disney Company's (DIS) ambitious plan to expand its theme parks and cruise line has sent mixed signals to investors, both on Wall Street and among retail investors.

While the company unveiled a slew of new attractions, including a villain-themed land and an expanded “Avengers Campus”, at its D23 fan convention, concerns about the broader economic climate and Disney's own financial performance have tempered enthusiasm.

Shares of the media giant were down 0.60% at $85.69 on Monday afternoon, while Stocktwits sentiment showed Disney’s nearly 286,000 retail followers remained ‘neutral’ (49/100) following the grand announcement.

The company's parks division, once a major growth driver, has encountered headwinds due to weakening consumer spending. This trend, coupled with Disney's decision to increase streaming service prices, has contributed to a 5% decline in the stock price year-to-date.

Wall Street analysts, while maintaining their ratings, have cut back on price targets — although all remain well above current levels — reflecting concerns about the company's near-term outlook.

CFO Hugh Johnson has acknowledged the challenges, forecasting flat revenue for the Experiences segment in the coming quarters.

Retail investors on Stocktwits are divided. Some point to positive catalysts such as earnings beats, dividend increases, and stock buybacks.

"In addition to the beat on earnings/EPS and streaming turning a profit, do people even realize they increased the dividend and are buying back the stock," one user noted.

Others are critical of 72-year-old CEO Bob Iger's leadership. "Iger gets paid over 25 million a year as CEO and he has done absolutely nothing for this company," one user claimed.

Iger made a sensational comeback as Disney CEO in November 2022 to fix a company in crisis and had promised a return to growth after a period of restructuring. The stock has lost over 11% of its value since then. The market remains cautious.

Even with Marvel’s "Deadpool & Wolverine" grossing over $1 billion globally, Disney has yet to fully win over investors, be it on Wall Street or among the retail crowd.

This much is clear: Both sides are convinced the Mouse House’s ability to balance its ambitious expansion plans with the current economic realities will be crucial in determining its future success.

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