Benzinga - by Anusuya Lahiri, Benzinga Editor.
Walt Disney Co (NYSE: DIS) stock is trading lower after it disclosed plans to double its capital expenditures at its Disney Parks, Experiences and Products ("DPEP") segment.
The company sees a capex of $60 billion in aggregate over the next decade, including investing in expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns.
Also Read: Disney Explores Strategic Shift Away from Traditional TV to Focus on Streaming: CEO Bob Iger
In the ever-evolving media and entertainment landscape, Disney strategically navigates the changing currents.
While their streaming business transforms to ensure profitability and traditional TV networks face potential sales, Disney's parks, experiences, and products division shines as a success, CNBC reports.
However, domestic parks, mainly Walt Disney World in Florida, observed a noticeable decline in attendance and hotel room bookings.
The division's strength, instead, emanates from its international parks, where the third quarter saw a remarkable 13% surge in revenue, amounting to $8.3 billion.
Like Disney, Comcast Corp's (NASDAQ: CMCSA) Universal Parks in Florida experienced a parallel slowdown during this period.
This heightened investment commitment aligns with Disney's ongoing legal disputes with Florida Governor Ron DeSantis. These legal battles can potentially influence Disney's expansion plans for its Orlando location in the years ahead.
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Price Actions: DIS shares traded lower by 3.63% at $81.93 on the last check Tuesday.
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