The Clap
Disney (NYSE:DIS) saw its stock fall around 5% after “Avatar: The Way of the Water” recorded a weaker-than-expected box office weekend.
What
The movie earned $134mn at the domestic box office during the weekend, less than analysts’ expectations of $175mn and Disney’s expectations of $135mn – $150mn.
Prior to the box office weekend, analysts expected the sequel to the award-winning movie to be a raging success. The holiday season is set to be the true determinant of the movie’s success.
So What
Problems continue to pile on for Disney, who have been faced with difficult challenges since movie theaters and theme parks were shut down during the pandemic.
While the movie industry is still recovering, inflation has been adding pressure on consumers, driving them to spend more cautiously and shift focus from leisure to necessities.
Now What
Since the return of former CEO Bob Iger, Disney is set to undergo some restructuring to adapt better to difficult market conditions.
