This year it looked like it was going to be tough on the Walt Disney
While stocks are up, the company has held $ 5.4 billion over the past two quarters, which forced investors to sell. Money manager David Sather sold all 153,875 of his Disney shares. He is among 150 institutional investors who have liquidated all of their Disney holdings this year according to Bloomberg.
Collectively, 5.38 million shares now valued at nearly $ 1 billion were sold.
“Even with social distance, we would not see how the parks were going to perform well,” said Sather, president of Sather Finance Group in Victoria, Texas. “It’s not when your profit is based on so many people coming into your theme parks.”
Share prices have gone up largely due to Disney + launching last November. The streaming service now has over 86 million global subscribers. Disney also generates revenue through popular media networks such as ESPN, Disney Channel and the ABC Television Networks. While other segments of the industry are showing promise, the parks themselves are missing out in the billions this year. Disney has combed some of that loss with huge taxes from the parks. In September, the company announced the dismissal of 28,000 employees and has expanded that number to reach 32,000 employees in the first half of fiscal 2021.