Figvention
Mouseketeer
- Joined
- Jun 12, 2018
A smart company doesn't wait until their back is against the wall to take actions to survive long term. When the road gets tough, you start to take action, the tougher the road, the tougher and more frequent the actions. Disney Parks are facing some hard times right now. So is the movie division and the broadcast and cable channels. There are a lot of headwinds. So the actions have been pretty tough already. Laying off tens of thousands and borrowing billions.
But any smart business doesn't wait until the last second to do this. You don't draw every resource while leaving your head in the sand hoping things get better. You adapt to survive. Disney borrowed money and cut expenses. That provides a cushion. I expect they will continue to cut expenses as much as possible and, frankly, when possible to borrow as cheaply as possible. It's not so much to appease the street as it is to not be forced into a situation where they have fewer choices. The fact that Wall Street appreciates and rewards this kind of sound business thinking, as would any lender or owner, makes it easy to yell and scream about evil "Wall Street", but mostly what we see from Disney is simply sound strategy for a company that is facing significant issues.
Absolutely sucks for the employees. My heart goes out to them and I hope this is temporary. But that doesn't have me condemning Disney for doing the smart move.
The logical underpinning of your argument is false. You pretend that Disney and auto parts manufacturing is the same business model. An “entertainment” venue is slashing entertainment, in your argument the auto parts manufacturers can deteriorate the quality of the product then say “Wall Street” as cover. Hey I would love to pay more for the brakes on my car, even through they have much less stopping power than they used too because I’ve always like the brand... SAYS NOBODY. A smart investor realizes when they are strangling the golden goose.
The folks who can afford 10 days at the Poly can also afford a European river cruise. Keep trying to maximize profit this quarter by degradation of experience, they WILL CHOOSE SOMEWHERE ELSE. Simply because they can, Mickey waffles doesn’t add up to a 7k, please stop pretending it does.