Part 8/15:
The Controversial $60 Billion Capex and Physical Assets
In stark contrast to the streaming narrative, Disney’s massive Capex plan for parks, hotels, cruise ships, and timeshares raises eyebrows. Needham analyst Laura Martin warns that this bold investment strategy is largely based on a post-pandemic rebound, which may not be sustainable long-term.
Historical data indicates that the recent surge in park revenues and guest spending was driven heavily by pent-up demand during the COVID-19 lockdowns. Disney’s own reports tout record per-capita spending, but Wall Street remains skeptical. The concern is that Disney is overestimating the durability of this growth, betting on a cyclical rebound rather than a sustained upward trend.