The Mouse, the Money, and a New Chief

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Now, Disney. A name that conjures up images of grinning mice and castles made of spun sugar. But behind the sparkle, there’s a rather complicated story of money, power, and a succession of grown-ups trying not to mess things up too badly. Over a century, only three proper heads have steered the ship, each one leaving their sticky fingerprints on the till.

Old Walt himself, a visionary, naturally. He dreamed it all up, but thankfully had his brother Roy to keep a watchful eye on the pennies. Roy was a sensible sort, you see. A bit like a very large, very responsible badger. When Walt popped his clogs, Roy lumbered out of retirement to prevent the whole shebang from tumbling into a financial bog. He built the Florida swamp castle, which was a feat of engineering, and sheer stubbornness.

Then came a bit of a wobble. A period where things were rather…untidy. Between Roy’s departure and the arrival of Mr. Eisner, the whole place felt like a lost sock in a washing machine. Eisner, a fellow with a rather impressive comb-over, did manage to get things sorted, at least for a while. He rescued the cartoons, expanded the parks, and even had the good sense to say ‘no’ to some frightfully bad business deals. But power, you see, has a way of turning people into rather unpleasant pumpkins.

Enter Mr. Iger. A smooth operator, you might say. He acquired Pixar, Marvel, and Lucasfilm – gobbling up creative companies like a greedy giant. He saw the future was in those flickering boxes, the streaming contraptions. But even Mr. Iger, despite all his cleverness, couldn’t quite stop the money from dribbling away in recent years. The stock market, a rather beastly creature, wasn’t impressed. It prefers a good, steady climb, not a wobbly, uncertain shuffle. He gained a paltry 7% while the S&P 500 rocketed up 76.6%!

And then, a curious thing happened. Mr. Iger was called back, like a retired detective summoned to solve a particularly baffling case. But even detectives, eventually, need to hang up their hats. Now, the baton has passed to Mr. D’Amaro. A fellow who, by all accounts, enjoys a bit of a gamble. He’s a risk-taker, apparently, much like Mr. Iger. Though some might say, that’s a bit like giving a chimpanzee the keys to the sweet shop.

From Magic to Mild Discomfort

Mr. D’Amaro inherits a peculiar beast. It’s not the high-octane growth machine it once was. A single blockbuster film doesn’t move the needle much these days. No, the real money is in experiences. Those parks, those cruises, those rather expensive souvenirs. It’s all about getting people to do things, rather than just watch things.

And business is booming, especially with that animated sequel, Zootopia 2. A record-breaker, apparently, grossing $1.7 billion. A truly astonishing amount of money. Streaming, too, is finally turning a profit, though it took a few years and a mountain of red ink to get there. But the experiences segment is the real star, contributing a mind-boggling 71.9% of Disney’s operating income.

Disney is planning to expand, of course. More cruises, bigger parks, and a brand-new Disneyland in Abu Dhabi. A bold move, some might say. A bit like building a gingerbread house in a sandstorm. But Mr. D’Amaro seems to thrive on risk. He reckons one-third of the world’s population is within a four-hour flight of Abu Dhabi. A rather large target audience, you must admit.

A Mouse for Patient Investors

If Disney can keep turning those experiences into cold, hard cash – and continue improving those streaming margins – then the stock might just do rather well. Especially if investors regain a little bit of confidence. Right now, the stock is trading at a rather modest price-to-earnings ratio of 15.7. A sign that people are a bit skeptical, perhaps.

Buying a good company when everyone else is looking the other way takes patience. It can be frustrating to watch your investment lag behind the market. But the investment thesis, for those with a long-term view, is looking rather promising. Though, of course, if Disney fails to deliver on those streaming promises, or if those new ventures don’t quite take off, then the valuation might remain stubbornly depressed.

So, there you have it. A tale of mice, money, and a new chief. Whether Mr. D’Amaro can steer the ship through these choppy waters remains to be seen. But one thing is certain: the world of Disney is never dull. It’s a place where anything can happen, and usually does. And that, my friends, is a rather marvelous thing indeed.

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2026-02-07 14:34