Walt Disney (NYSE:DIS) announced its intention to significantly increase investments in its Disney Parks, Experiences, and Products segment. Over approximately a decade, Disney plans to nearly double its capital expenditure for this segment, committing to invest around $60 billion. The stock fell more than 3% intra-day today in response to this announcement.
These expansion plans involve enhancing both domestic and international parks and cruise line capacity, with a focus on projects expected to deliver strong returns. Disney cites its strong financial condition, including cash reserves, access to capital markets, and borrowing capacity, as the basis for these investments. This financial strength ensures the company can meet various financial obligations and support the growth of existing businesses and new projects.