Proposition Joe said:
Universal's stock price is up 7% YTD.
Disney's is up 10%.
I know this whole "go woke and go broke" saying is fun because it rhymes and stuff... but after Nike's share price absolutely skyrocketed post-Kapernick anyone who continues to parrot it looks like a clueless buffoon.
That doesn't mean you have to support the direction Disney is taking - not opining on that - but you really need to start coming to grips that these companies aren't taking the financial beating you think/hope they are.
There's a few things wrong with this assessment...
For one, YTD is an arbitrary timeframe. Over the last year, universal is down about 2%. Disney is down about 20%. Over the past 2 years Universal is up about 10%, but Disney is DOWN 40%. Over the last 5, Disney is about even, and Universal is UP about 60%. There are certainly arbitrary periods in there where Disney outperforms universal in stock price through normal variance, but the longer term trends are a little different. That said, stock price is a little disconnected from financial performance because it is only an aggregate estimate of investors' valuation of a company based on current value and expected future performance.
Go take a look at Disney's quarterly net income. It tanked in 2020, understandably, and recovered in 2021, but it still hasn't recovered past 2011/2012 levels. Disney's trailing 13 months of net income at the end of 2019 was $10.4 billion. At the end of 2022 it was $3.3 billion, and that doesn't include the pandemic related losses of 2020 or 2021. Universal has stayed pretty consistent throughout. There's certainly some seasonality to their quarterly profits, but aside from 2017, their trailing 12 months of net income has been very consistent. Disney's downturn doesn't seem to be market related considering Universal seems to be doing fine.
Whether you like it or not, Disney is taking a financial beating.
ETA And Nike's stock post Kapernick is more market related. The SP500 and DJIA were both up significantly over the same time period. More importantly, Nike's net income really didn't change much. Kapernick had no appreciable effect one way or the other on Nike's actual financial performance.

