Disney is unfortunately expected to be listed among the worst-performing stocks in 2022 after the company became involved in a high-profile political disagreement in Florida.
In March 2021, Disney’s stock reached an all-time high, trading at virtually $200 per share. However, the stock has been in free-fall ever since. As the market shut down on Thursday, the stock was hovering close to $120 per share, down approximately thirty-three percent from a year ago.
Disney has been in the spotlight lately after it publicly opposed Florida’s “Don’t Say Gay” bill signed by Republican Florida Gov. Ron DeSantis. The legislation forbids classroom instruction on “sexual orientation” and “gender identity” with children in third grade or younger “or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards.”
On Thursday, the Florida House of Representatives introduced a law that would dissolve Disney’s unique governing power in the Sunshine State. The bill, which now heads to DeSantis’ desk, could have gigantic tax implications for Disney, one of the state’s largest private employers with more than 60,000 workers.
Nevertheless, Disney CEO Bob Chapek, 61, was slammed by critics for the way he handled the bill. LGBT advocates blasted the CEO for being slow to speak out, with some employees quitting their job in protest. Others urged the CEO to take back his “antagonistic” comments against the bill and to stop “cowering to a small political minority.”
Disney is also mired down by investors’ curtailing enthusiasm for streaming services as inflation eats into America’s pocketbooks. Netflix shares, in particular, dropped 35% this week on the news that the streaming platform had lost 200,000 subscribers.
