Disney's Stock Dropped Tremendously Due to Virus
Disney, as we all know, is a multimedia empire that owns all different kinds of properties that are beloved. With that said, it is an entertainment industry. So, in order to continue to bring in revenue and innovate to increase stock or at least keep it level, they must keep selling tickets and merchandise. With Covid-19 preventing people from leaving home or gathering anywhere, Disney is having a hard time making up for the whole mess. Parks and stores are closed, productions are cancelled, and theaters are shut down.
Movie productions have all but shut down as of now and since Disney owns so many properties, they are losing time for future films. Among the movies whose productions have shut down are the Avatar sequels, the live-action Little Mermaid, Shang–Chi and the Legend of the Rings, The Last Duel, Nightmare Alley, Vacation Friends, Shrunk, Peter Pan & Wendy, and Home Alone for Disney+. With these films in development limbo, Disney has a hard time ahead of them because they, like many other companies, are losing out on a lot of revenue. They are still bringing money in with Disney+, but they are losing out with investors since everything is shut down.
To put in perspective how much Disney is losing and how much has already been lost, one month ago their stock was sitting at 141.30, but now sits at somewhere around 92. They aren’t the only company getting hit hard by the crisis, with airline companies also being gouged by everything that is going on. Things going wrong for them has just been a bit more noticeable because they are, like many businesses, still paying employees who cannot work due to the virus. Not only that, but due to health concerns, they have had to push film releases such as Black Widow, back from their original release as well. Although they originally had no plans to do so, things have taken a drastic turn.
On the brighter side, to put it lightly, with streaming services and people being able to work from home, the conglomerate hasn’t had to shut down completely. This is an issue shared by numerous, if not all companies at the moment. The question that remains is how they will try and recover when everything is said and done. Some believe that other companies can take advantage of Disney’s current misfortune, but other companies are going through similar issues or will be going through them. During quarantine or following it, we will see how they manage to react to the issue and make up for it.