Let it go
Frozen capex budgets in sunny Florida
Good morning my precious Fabergé eggs. This is your Stock Market Rundown for June 19, 2023.
TODAY’S TOP STORY: GAME OF THRONES IN THE MAGIC KINGDOM 🏰
Disney is a juggernaut of entertainment, as any mom or dad who knows all the words to Frozen will tell you. Then there are those weirdo adult Disney couples that make annual trips to the Disney World to hang out with Mickey—what’s going on there?
Anyway, Disney’s stock has been struggling, and is down in the past year when the overall market has been strong. CEO Bob Iger is now trying to turn Jack Sparrow’s ship around.
In an iconic managerial move, Iger was CEO of Disney from 2000 to 2020, retired, and then came back in 2021, like some sort of corporate Jesus.
Iger isn’t afraid to play hardball. Disney is cancelling a planned $900 million expansion in Florida, amidst a headline-grabbing dispute with governor Ron DeSantis. In a recent earnings call, CEO Iger asked rhetorically, “Does the state want us to invest more, employ more people, and pay more taxes, or not?” Love the pugnacity.
More headaches arose for Iger with the longtime CFO of Disney, Christine McCarthy, abruptly quitting. The WSJ reported this followed clashes with Iger and other top execs over the oodles of cash the company splashes out on content, for episodes of everything from She-Hulk to Duck Tales.
To cut costs, Disney is trimming that content budget, and has cut 7,000 jobs in the past few months. They’re even closing Galactic Starcruiser, a hotel staffed by costumed employees that replicated actually being in Star Wars. The nerd is strong with this one.
72-year-old Iger is now seeking a successor, but given this turmoil, it’s going to take some serious managerial talent to be the next to sit in the Magic Kingdom’s throne.
SO WHAT ELSE IS GOING ON?
Somebody tripped over a power cord in a server room in Virginia and thousands of websites spazzed out for hours. Folks, there is no cloud; it’s just somebody else’s computer.
The world’s two richest men had lunch. (Elon’s mom was also there.) I’m guessing the tip made the server’s day.
Beijing is making moves to internationalize the Chinese currency (the yuan) and encourage its trading partners to bypass the US dollar. While the greenback’s share of global forex reserves has declined, its dominance is secure: it’s still used for 60% of all international deposits and loans. Plus, cartel drug lords insist on it.
Luxury brand Valentino will provide a virtual try-on experience for its men’s Autumn 2023 ready-to-wear collection, powered by augmented reality. Letting bros view themselves in 360 degrees of impeccable drip should inspire a few Amex black cards to get thrown down.
That’s it for today, see you bright and early tomorrow. Yours in capitalism, The Axe