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Published -
- June 25, 2020
- 12:38 pm
Shares of Walt Disney (DIS.N) went down 2.0% on Thursday after the media company postponed the reopening of the entertainment park along with resort resorts in The golden state, adhering to a rise in fresh COVID-19 circumstances in the state.
The reopening of Disneyland Park, as well as Disney California Adventure Park that was earlier scheduled for July 17, will certainly be postponed up till Disneyland obtains authorization from state officials, the service said.
In late January, the pandemic began damaging companies across Disney ‘s global profile when Disney shuttered Shanghai Disney Hotel and likewise Hong Kong Disneyland. Disney closed Walt Disney World in Orlando, Florida – the service ‘s largest entertainment park – in March. The park is set to resume on July 11, although petitioners are pushing Disney for a hold-up, pointing out a spike in COVID-19 situations in Florida.
Last month, Disney estimated worldwide lockdown actions targeted at battling the spread of the contamination lowered its earnings by $1.4 billion, primarily from its closed theme parks. In a June 11 record, Sanford C. Bernstein analyst Todd Juenger stated that Disney is losing about $1 billion a month while parks are shut, regarding what it otherwise would certainly have earned. The coronavirus-ravaged UNITED STATES’ financial economy has in fact begun to resume nevertheless there is little clarity on the rate of the recovery, with brand-new instances in the nation starting to rise. “The problem is twofold: the longer the hold-up, the more cash Disney sheds.
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How did the news of the delay affect Disney’s shares?
Disney Shares Drop as Company Delays Reopening of California Disneyland
The Walt Disney Company has announced that it will delay the reopening of its California-based Disneyland theme park indefinitely, causing a significant drop in the company’s shares. This news comes as the state of California continues to battle a surge in COVID-19 cases.
Despite making substantial investments in new safety measures and protocols to ensure the safety of its visitors and employees, Disney has been unable to secure approval from state officials to allow the park to reopen. While the company was hoping to reopen the gates of its iconic theme park on July 17th, the lack of government approval has forced it to reassess the situation and delay the date indefinitely.
The news of the delay has caused a dip in Disney’s shares, which fell around 2% following the announcement. The company’s stock has been hit hard by the pandemic, with the stock falling nearly 30% this year alone. The delay of California Disneyland’s reopening is another blow to the company, which relies heavily on its theme parks for revenue.
The impact of the delay is not only felt by the Walt Disney Company but also by the surrounding businesses that rely heavily on the flow of visitors to the theme park. Hotels, restaurants, and shops in the area have all been hit hard by the continued closure of the park.
The reopening of California Disneyland was seen as a significant milestone in the recovery of the tourism industry, and the delay is a setback for the industry’s efforts to bounce back. The news is particularly frustrating for the Walt Disney Company, which has seen some of its international parks reopen, including Shanghai Disneyland and Hong Kong Disneyland.
The delay also comes as other theme parks and attractions around the world are reopening. Universal Orlando and SeaWorld in Florida have both reopened, and other parks around the country are expected to follow suit in the coming months.
As COVID-19 cases continue to spike across the United States, the Walt Disney Company and other large enterprises are under tremendous pressure to balance economic and public health considerations. While the delay is a disappointment for Disney fans and investors, it underscores the importance of prioritizing the health and safety of individuals above all else.
In conclusion, the delay of California Disneyland’s reopening is a blow to the Walt Disney Company, its employees, and the businesses in the surrounding area that depend on it. The continued uncertainty and economic fallout from the pandemic have created tremendous challenges for the tourism industry, and this latest news demonstrates the difficulties of balancing public health and economic concerns.
