TheMaxRebo
DIS Veteran
- Joined
- Jan 12, 2008
They actually aren't, and they certainly aren't to the extent that companies like Disney Profit. Why does Disney care about its investors ? They aren't issuing any further stock in order to generate investment money and build the company, they stock value is a moot point to Disney as a company. Of course, to it shareholder's / owners, that's a different story.
Maybe you are unaware, but most businesses, millions of them, don't make any profits. They pay their expense, pay their owner's/managers/workers a salary, and break even generally speaking.
It's ironic that your concern is that the money goes out to the shareholders so they can in turn spend it on things, and then you think it would be a terrible idea that the same money would go to the workers who produce those profits because that would spell the end of the economy, I mean, who would buy things and stimulate the economy ??? As if, if the money went directly to those workers they wouldn't spend the money and stimulate the economy themselves ?
Also, the owners aren't "mostly normal everyday people" around 10% of people own 85% of the stock market value. Sure, 15% is shared by the other 90%, and about half of Americans own none. The owners are, by FAR, VASTLY, Almost completely (use whatever accurate descriptor you want) The upper 10%, and upper 1% of the wealthiest in America and the world.
Disney cares for the investors if they want to get additional funds for future investment - the value of the stock and the volatility of their earnings and projected earnings has a direct impact on what interest rate they can borrow money at
Plus many senior executives are largely compensated through stock and dividends on the stock they are given ... so if you want to attract top executives your stock needs to perform well
And most of the stock is own by institutional investors - no individuals ... I am sure at least a good portion of that is probably from wealthy people investing in various funds, but a lot of it is funds that are managed as part of regular people's 401Ks and IRAs, etc. (I know that is where my ownership in DIS is)
So the stock price definitely matters - personally, I wish for a company like Disney the investors took more of a long term view and it changed to more of a dividend stock - as I think the brand name means a lot for the value of the stock and having happy CMs that provide great service and thus increase the feeling the general population has about the brand should matter - too much focus on quarterly earnings for DIS