Disney stocks have tumbled so far in 2022 as the company waded into Florida's political arena while Republicans in the state voted to revoke the firm's self-governing status in the central portion of the state.
The firm has faced targeted criticism in recent weeks after issuing a statement opposed to a bill backed by Florida Gov. Ron DeSantis that prohibits teachers to instruct on sexual orientation and gender identity in children in the third grade or younger, "or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards."
Disney at the time criticized the bill and affirmed its support for the LGBT movement. As a result, some parents groups said they would organize a boycott of the company's products, movies, theme parks, and shows.
On Thursday, the Florida House of Representatives voted to pass a bill that would revoke the company's special governing and tax status in central Florida, where it operates a 25,000 square-acre parcel of land that includes Walt Disney World and other tourist attractions. A day earlier, the state Senate voted to approve the measure.
DeSantis, a Republican, now has the option of signing the bill into law. In recent weeks, the governor has accused Disney's corporate office of adopting a "woke" ideological framework, adding that Disney is sullying its reputation.
The Republican-passed bill drew criticism from Democrats, including President Joe Biden.
He also claimed that "I don’t believe it’s where the vast majority of the American people are,” without providing evidence.
The Epoch Times has contacted Disney's corporate office and Walt Disney World for comment.
Meanwhile, some analysts have noted consumers are cutting back on streaming services, including ones pushed by Disney, Netflix, and others.
“The market appears to be moving past rewarding media companies, as it did in 2020 and 2021, simply for their forecast of future streaming subscriber growth,” MoffettNathanson analyst Michael Nathanson last month in reference to streaming service Disney+ and others. “Now it seems that investors are looking further down the income statement—and also, finally, digging through the cash flow statement—to try to determine the underlying steady-state profitability of the pivot to Direct-to-Consumer content delivery,” Nathanson added.