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Disney Holder Warns Streaming Gains Too Meager to Offset Parks

  • Gerber Kawasaki says Disney+ may not offset ‘tough situation’
  • But investor sees return of sports slowing decline in cable
Cars arrive at the Walt Disney World theme park entrance on July 11.

Photographer: Octavio Jones/Getty Images  

Walt Disney Co. has been counting on success at its new Disney+ streaming service to offset some of the slowdown seen at its theme park division, but the odds may have suddenly grown longer after rival Netflix Inc. forecast that consumers’ desire for new entertainment subscription plans is cooling off.

Disney is “in a tough situation” with a large chunk of the company’s revenue locked down in hotels, cruises and theme parks due to the worldwide Covid-19 crisis, said Gerber Kawasaki Inc. investment adviser Nick Licouris. Management just has “to weather this one out until it’s safe to get parks back up,” Licouris said in an email. The Santa Monica, California-based wealth management firm has Disney among its top three holdings, with a recent 13F filing listing more than 143,000 shares valued at almost $17 million.