Walt Disney Co. (NYSE:DIS) closed out 2023 with a modest gain of 4.26%, significantly lagging behind the S&P 500 Index, which posted a little over a 24% gain for the year. Tesla CEO Elon Musk, engaged in a public dispute with Disney over the removal of ads from his platform X, hinted that the future appears grim for the entertainment giant.
What Happened: An X account that writes Musk’s quotes brought up an old remark by the billionaire entrepreneur: “Disney has a major content problem. Almost their entire upcoming slate is unwatchable. They are the world’s biggest example of go woke, go broke.”
“Disney’s entire market cap right now is just the parks,” said Musk in response to his own quote from a while ago. “Investors are valuing everything else as neutral to negative, for good reason.”
Disney’s entire market cap right is just the parks. Investors are valuing everything else as neutral to negative, for good reason. https://t.co/vYeCPNqxCF
— Elon Musk (@elonmusk) December 31, 2023
Why It’s Important: Disney, among other companies, paused advertising on X after Musk engaged with an antisemitic post. Despite Musk’s recent apology for his interaction with the post, he took a swipe at the companies that suspended advertising during the New York Times Dealbook Summit, expressing a clear disdain for the prospect of being influenced or blackmailed by advertising or money. Musk specifically addressed Disney CEO Bob Iger during the event, stating, “Hey Bob, if you’re in the audience, that’s how I feel.”
The feud even spilled into Tesla’s cars, as the Disney+ app icon became harder to find on the vehicles’ infotainment system.
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The Burbank, California-based company reported a modest 7% revenue growth for the fiscal year 2023, with earnings per share dropping from $1.75 to $1.29. On an adjusted basis, earnings climbed from $3.53 to $3.76. Attendance at the company’s theme parks has not seen a significant rebound after the COVID-19 lockdowns in 2020 and 2021.
Disney’s streaming business continues to face financial challenges amid growing competition, and the linear TV business is experiencing a decline, aligning with broader industry trends.
The company has struggled to achieve success at the box office with…
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