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New Reports Reveal Where Disney Is Spending Investors' Money

Disney is spending investors’ money, as any publicly traded company would. Its recent reports reveal exactly where that money’s going.

disney world price increases 2020 vacations
Credit: Inside the Magic

Disney Is Spending Investors’ Money on Entertainment and Theme Parks

The Q3 earnings report that Disney released revealed a few insights into the Walt Disney Company’s books. It shows that CEO Bob Iger is sensible, but also that there isn’t the type of fluctuation the media might suggest.

Disney Dollars
Credit: D23

Why Disney Spending Investors Money Matters

At one time, Disney stock was something left to the imagination, but now owning a part of Walt Disney World is actually obtainable through fractional shares.

The two main shareholders in the Walt Disney World company are Blackrock and Vanguard. Yet there are many who hold a fractional share thanks to a change in brokerage technology.

Related: Disney Releases Confusing Reports Amid “Deception” Lawsuit

Disney Stock Declines
Credit: Disney / Inside the Magic

Disney Stock: Spending on Disney+ and Theme Parks

There are a few things like the Disney Vacation Club losing members or Disney CEO Bob Iger coming under fire might sway the markets, but this is about spending.

Related: Experts Say Disney Stock Is Promising Despite a Nosedive in Attendance

Disney Plus Hotstar Low Quality Streaming
Credit: Disney / Inside the Magic

Disney+ Streaming Service

Reports show that the investment is into original content in a bid to grow subscribers, and that the Walt Disney Company is investing in the streaming platform. There are upcoming original content examples like Star Wars material from the Walt Disney Co. that attest to it.

Related: Disney Loses 4 Million Subscribers on Its Streaming Platform

While it is easily the lowest return on investment, without Disney having a streaming service, brand recognition, and respect would go along with it. The Disney+ numbers ebb and flow with the tides of the streaming service landscape. However, the theme parks haven’t been.

major theme parks across America, showcasing Worlds of Fun, Walt Disney World Resort's Magic Kingdom, and Universal Studios
Credit: Worlds of Fun (left) / Walt Disney World Resort (center) / NBCUniversal (right)

Disney Spending Investors’ Money on Theme Parks

The reports make it clear that Disney is investing in the Walt Disney Company, now and in the future. Money goes into the routine upkeep of its theme parks, but also into working despite Florida Governor Ron DeSantis’ lawsuits and theme park updates.

Related: Experts Say DeSantis Is Right About Disney

As a global company, much of what the Walt Disney Co. uses its money for is the maintenance of its theme park experience. That means branding, merchandise, and safety. The quarterly earnings show that the theme parks retain a steady return, comparing its Q3 reports to the last nine-month spread.

What do you think about Disney stock, whether fractional shares or a large portfolio? Share your inner Wall Street wolf wit in the comments below!

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