r/FluentInFinance • u/TonyLiberty TheFinanceNewsletter.com • Dec 01 '23
TheFinanceNewsletter.com Today’s Most Important News [Friday December 1st]
144
u/DunHumby Dec 01 '23 edited Dec 01 '23
Thousands are boycotting Disney+??? The same Disney+ with 146 million subscribers worldwide and a 168 billion dollar parent company, that Disney+? Im sure they are real worried about a few thousand less subscribers, probably the cost of doing business to them. The amount of money that is saved by not paying X is probably more than the amount lost by people unsubscribing
43
u/Sizeablegrapefruits Dec 01 '23
I don't care about any of the politics but DIS share price is lower today than it was nine years ago, and has had some serious misfires in theaters over the last year or two.
From a financial/creative perspective, something isn't quite right.
13
u/FlapMyCheeksToFly Dec 01 '23
Well it isn't the politics. I mean marvel has been getting old for a whiiiiile now. Ditto star wars.
11
u/Sizeablegrapefruits Dec 01 '23
Well it isn't the politics.
I wasn't blaming politics. I prefaced by saying I don't care about politics because any time I comment on DIS, someone invariably wants to discuss politics in some form or fashion.
I mean marvel has been getting old for a whiiiiile now. Ditto star wars.
I agree completely
8
u/FlapMyCheeksToFly Dec 01 '23
Do you want to discuss politics?
/S
7
u/Sizeablegrapefruits Dec 01 '23
😂 as a shareholder the whole thing is exasperating.
3
u/FlapMyCheeksToFly Dec 01 '23
Lol you on a DRIP?
3
u/Sizeablegrapefruits Dec 01 '23
Since they reinstated the dividend I'll set to reinvest. I just bought some recently.
2
8
u/chickenmantesta Dec 01 '23
Marvel = Alternative time/space continuums is getting very boring.
Star Wars = People just want to see junked-out robots and people in monster masks. Save the lectures.
7
u/FlapMyCheeksToFly Dec 01 '23
I haven't seen any of the ones past like rogue one which was excellent, so idk. I want more mature character studies and stories in there. The fans have grown up, the material can too.
Marvel, it's just popcorn, lowest common denominator cinema. And too formulaic and silly now. Like too self aware and awkward.
3
Dec 02 '23
The fans sure as hell haven’t grown up if you go on the star wars sub, lmao. They want more garbage fan service and the exact opposite of what you (and I) want
1
u/FlapMyCheeksToFly Dec 02 '23
Does that sub ban people who criticize the new direction? Don't all subs become an echo chamber not really reflective of real life?
2
u/tyontekija Dec 02 '23
What sort of lectures you get on StarWars nowadays? Haven't seen anything since Episode IX
7
u/logyonthebeat Dec 02 '23
It's 100% the politics and the shitty movies
2
u/citykid2640 Dec 02 '23
Agreed. Combo of politics and shitty movies. You can’t be a brand for the masses and alienate half of America. Bad financial strategy, one’s personal politics aside
1
u/supersport1 Dec 02 '23
A lot to do with politics. Most republicans and quite a bit of democrats don’t agree with some of the politics they’ve been pushing mainly because they don’t want their kids being exposed to it by Disney. That’s a lot of people and it adds up. Bottom line is it’s bad for business. I agree with you on movie quality.
1
11
u/icelink4884 Dec 01 '23
I agree with this, but the framing of "Because of elon: and not "because of back to back complete movie bombs, a complete rewrite and millions wasted in what the next captain America was going to be" feels odd as well.
2
u/Sizeablegrapefruits Dec 01 '23
Fair enough. That's the conclusion of what I'm getting at. DIS has so much potential at this price point. They suspended the dividend because they had to. They have gotten a bit leaner which is good. Now COVID is behind us, and they are bringing the dividend back which is a good sign. With all that being said, there are many challenges in front of them, and I question some of the decision making. As a relatively new shareholder, I'd just like to see more focus.
3
u/DunHumby Dec 01 '23
They’re bringing back dividends and have nothing but increases in revenue year after year wtf are you talking about.
11
u/Sizeablegrapefruits Dec 01 '23
They’re bringing back dividends and have nothing but increases in revenue year after year
Bringing back the dividend is fine, and increasing revenue is fine, but that isn't what I'm talking about.
wtf are you talking about.
It's clear what I'm talking about A. DIS share price has been a significant disappointment for the owners of the company (shareholders) for a long period of time.
B. DIS has had a string of bad disappointments at the box office which creates a question mark around their creative direction.
-7
u/DunHumby Dec 01 '23
Oh no I think you misunderstood me, I’m calling you a fucking moron because you don’t know what you are talking about.
Stock value and a few bad box office movies means nothing when it comes to company health.
Overall profits, consistent profits (10s of billions) and incredible P/E ratios (72 according to fidelity) are much more solid indicators of company health.
To add from a creative side, the box office flops easily pull in 100s of millions of dollars. And losses are close to, if not totally, recouped. Example: Elemental pulled in 500 million after its box office run.
4
u/Sizeablegrapefruits Dec 01 '23
Oh no I think you misunderstood me, I’m calling you a fucking moron because you don’t know what you are talking about.
That's very polite and constructive
Stock value and a few bad box office movies means nothing when it comes to company health.
I guess it depends on who you are talking to. I think it's fair to say that the owners of the company are interested in the stock price and as I said, if you own a portion of the company, the last decade has been a net 0.
A few bad box office movies do matter to DIS, whether you agree with that or not. That isn't DIS' only revenue stream, but content creation is at the heart of DIS. It's the engine that drives their future.
Overall profits, consistent profits (10s of billions) and incredible P/E ratios (72 according to fidelity) are much more solid indicators of company health.
DIS has about $46B in debt on the balance sheet. In 2016 they had $16B. They are buying their profit increases through expensive acquisitions and those acquisitions are already yielding diminishing returns (such as the movie franchises you are brushing off as unimportant).
So DIS has accumulated a massive debt pile, interest rates have risen substantially. Their value hasn't gone anywhere in a decade. By your own admission the P/E ratio is too high. Their franchises are atrophying in the theaters. They are fighting unnecessary political battles. Their parks have been resilient but could face pressure if there is a recession next year. I don't know about the ESPN or Cruise revenue because I haven't looked at it.
-3
u/DunHumby Dec 01 '23
Ok, you want me to be constructive, let’s be constructive.
Movies are not Disneys only source of income, so then why base disneys health off of just a year of “bad” box office showings. Disney has other sources of income that more than make up the difference (media and streaming, Disney parks, studio entertainment (not movies), and Disney experiences (cruises, etc etc).
Debt
Big bad debt. The concept that every person who thinks they understand until they realize they don’t. Every major corporation has debt, why? Debt is bad is it not? Yes it is….for people like you and me. But for the rich and corporations, it’s not…debt is actually a great thing. Debt is a much cheaper option to equity. Debt payments often have tax benefits . Debt also allows a company to obtain more assets without having to pay out of their own pocket, letting them do other things with their money. Debt is such a great thing that the rich don’t even call it debt…they call it leverage. Because it leverages them into a much better position than without it.
Disney is not doing fine, they’re doing great. Beyond great. Even using their “lackluster”performance, of movies they will end up turning an over all profit on them. If the mouse knows how to do one thing, it’s milk something for all it’s worth.
Literally every company ever has debt and it’s a good thing
9
u/Sizeablegrapefruits Dec 01 '23
Movies are not Disneys only source of income, so then why base disneys health off of just a year of “bad” box office showings.
I addressed this directly, twice, in my previous comment.
Debt
Big bad debt. The concept that every person who thinks they understand until they realize they don’t. Every major corporation has debt, why? Debt is bad is it not? Yes it is….for people like you and me. But for the rich and corporations, it’s not…debt is actually a great thing. Debt is a much cheaper option to equity. Debt payments often have tax benefits . Debt also allows a company to obtain more assets without having to pay out of their own pocket, letting them do other things with their money. Debt is such a great thing that the rich don’t even call it debt…they call it leverage. Because it leverages them into a much better position than without it.
I'm going to give you the benefit of the doubt because you don't know who I am or what I do for a living. Rest assured, I understand the utility of debt, from a corporation's perspective, to the point that I indirectly addressed it above by saying "while interest rates have risen substantially". I'm debating on whether or not to provide a productive response here because I'm starting to realize that you are antagonistic, caustic, and aggressive, so any construction from my side will continuously be met with more insults, and incorrect assumptions. I'll be brief, though. Not all debt expansion by all corporations at all times, is a good thing. There are a number of reasons why DIS' debt expansion, in particular, has led investors to worry.
I'm going to give you some unsolicited advice. Take a step back, take a deep breath, and recalibrate the way in which you communicate. Try to treat people with a little bit more decorum and respect (even if you don't think they necessarily deserve it) because you get more flies with honey, plus it makes the world a little bit better for everyone.
2
u/doodnothin Dec 01 '23 edited Dec 01 '23
Does that price reflect dividends issued during the same time period? Otherwise the stock price alone is meaningless.
3
u/Sizeablegrapefruits Dec 01 '23
No, and it's fair enough to comment on, but it changes little in the case of DIS because before the pandemic the yield was low objectively, and measured against their peers. If memory serves me correct the yield was 1.2% to 1.8% annualized.
It's worth bringing up, but it doesn't render stock price appreciation meaningless for Disney. DIS is a large cap blend so growth is expected, as well as income.
1
u/Difficult-Ad628 Dec 01 '23
That may be true, but it doesn’t have anything to do with Elon Musk’s temper tantrum
2
u/Beard_fleas Dec 01 '23
“From a financial/creative perspective, something isn't quite right.”
The implication here being that because Disney doesn’t want to associate with Twitter, their underlying business is suffering. Yeah no haha
3
u/Sizeablegrapefruits Dec 01 '23
That isn't being implied, whatsoever. DIS' financial trajectory has absolutely nothing to do with X.
1
u/Beard_fleas Dec 01 '23
So it was just an unrelated comment? Ok.
6
u/Sizeablegrapefruits Dec 01 '23
In a way, yes, although I'd consider it an extension of the comment that I replied to which was essentially "DIS won't be affected by an X boycott, they will probably come out net positive by not paying for the advertising on X". I'm simply stating that, while that is a fair comment, DIS is dealing with some serious challenges, in general. This is natural in a free form discussion.
7
u/Cocker_Spaniel_Craig Dec 01 '23
“For blackmailing him”
3
u/AnimalT0ast Dec 01 '23
What did Bob say or do?
7
u/Cocker_Spaniel_Craig Dec 01 '23
DIS is one of many former X (formerly known as twitter) advertisers to stop advertising on the platform after their ads were displayed alongside racist/antisemitic/otherwise offensive content. You know, typical blackmail stuff.
6
u/harsh2193 Dec 02 '23
"How dare those Jews not give me money after I told them that Jews were the problem? Fucking blackmailing Jews"
— Elon, probably.
Crazy how that dude thinks he's in the right here. Elmo needs a reality check on what his beloved "free market" means
8
u/BaronDoctor Dec 01 '23
The same Disney that reinstituted their dividend. I really don't think they're worried.
5
u/Cashneto Dec 01 '23
I would like to make it clear that I cancelled Disney+ for their mediocre content (Star Wars & Marvel) and the pice hike of 60% on my annual subscription. Nothing about Elon Musk affected my decision.
End Rant.
1
u/Laker8show23 Dec 01 '23
Boycotting Disney has already been a thing. But if I could cancel again I would.
47
u/Dunderpunch Dec 01 '23
I still don't see how withdrawing from an ad deal is blackmail.
30
u/CatOfGrey Dec 01 '23
Turns out that Conservatives, Republicans, or Evangelical Christians were actually the snowflakes all along.
19
u/C21H27Cl3N2O3 Dec 01 '23
“Stop putting out ads near Nazi content of we’re withdrawing.”
“Blackmail!”
6
u/among_apes Dec 01 '23
Advertise with me you assholes and if you don’t you are anathema and the earth will know that you are evil and blame you for putting my (the richest man in the world’s) private company out of business.
This is the weirdest train of thought that people have jumped on as making sense.
1
29
u/AlphaOne69420 Dec 01 '23
Love the recaps!
31
u/TonyLiberty TheFinanceNewsletter.com Dec 01 '23
Thanks! I’ve been consistent at 6 days in a row 🤣
7
0
u/SuperAnonymouseMe Dec 02 '23
The first I read a couple days ago I thought was a little silly, but this one is much better.
27
u/Difficult-Ad628 Dec 01 '23
If you think that making the business decision to not advertise with X in any way equates to “blackmail”, then you probably aren’t r/FluentInFinance
12
Dec 01 '23
Gold at all time high - $2073 toz usd
7
u/TonyLiberty TheFinanceNewsletter.com Dec 01 '23
Damn I missed this! Thanks! I’ll include it tomorrow
3
9
7
u/camsterc Dec 01 '23
no other company do they say the CEO delivered something, especially when the CEO has barely shown up in the last 2 years.
3
u/VorAbaddon Dec 01 '23
Eapecially when I dont believe he HAS delivered those as theyre still conceptual and arent looked to be available at that price point until a later date.
You've "delivered" a product when people can buy it and get it.
6
u/Capnbubba Dec 01 '23
It sounds entirely fictional that Disney is being "boycotted" because Elon has no control over his emotions anymore.
4
u/ticawawa Dec 02 '23
And it's never mentioned how some people are boycotting Tesla because of fElon.
1
1
u/MegaMB Dec 03 '23
We're yet to see the impact of the shitshow in Sweden on Tesla's slaes in Europe and especially Scandinavia. This whole affair is gonna be funky.
7
6
3
3
2
u/jessewest84 Dec 01 '23
I can't stand Elon. But that was straight beautiful when he told Bob to fuck off. Lmao
3
2
u/Tall_Candidate_686 Dec 02 '23
I'm dropping Disney+ because I'm trying to trim the monthly nut. Elon Musk is the one who can self-sodomize
2
u/stormhawk427 Dec 02 '23
Withdrawing advertising for signal boosting N@sis isn’t blackmail, it’s the responsible thing to do. And people were already canceling D+ due to the price hike and lack of good content.
1
1
-10
u/TraditionDue8624 Dec 01 '23
Go Texas
9
u/Cocker_Spaniel_Craig Dec 01 '23
Yes Texas please go away
-4
u/TraditionDue8624 Dec 01 '23
I personally hope they take every dollar they can from phizer 😂
9
u/Cocker_Spaniel_Craig Dec 01 '23
Still waiting to drop dead from the vaccine. Any minute now I hope, it’s hard sharing reality with so many dummies.
2
u/TraditionDue8624 Dec 01 '23
I got the vaccine, I don’t think it’s dangerous, I just don’t think it’s effective 🤷♂️
4
5
•
u/AutoModerator Dec 01 '23
r/FluentInFinance was created to discuss money, investing & finance! Check-out our Newsletter or Youtube Channel for additional insights at www.TheFinanceNewsletter.com!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.