How Disney Could Weather the ‘Temporary Storm’ From Coronavirus

Sean Burch

Friday offered a brief respite for Disney shareholders after the company has been rocked by the double whammy of longtime CEO Bob Iger stepping down, and, more recently, the pain inflected on its parks, box office and TV businesses by the coronavirus pandemic. By the time markets closed on Friday, Disney shares were up 11.7%, to $102. That jump coincided with a healthy overall Wall Street bounce on Friday — and followed a brutal recent stretch for the company. Even after its Friday boost, Disney stock is still 11% below where it closed last week and even further away from the $140 per share price where it was trading a month ago. Disney isn’t out of the woods yet. Thursday’s closure of Disneyland and Disney World in the U.S., as well as its theme park in Paris, will cost the company big bucks. That isn’t debatable. Domestic parks brought in $17.4 billion in revenue last year, meaning a two-week shutdown in the States could cost around $700 million in sales. And earlier this week, UBS analyst John Hubelik wrote that Disney could be looking at a $2 billion dent in its quarterly revenue if its park closures last a month....

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