Walt Disney quickly falls on plans to expand investment in Parks

investing.com:

Walt Disney (NYSE:DIS) announced today plans to expand its investment in its Disney Parks, Experiences, and Products segment.

The decision is made to nearly double consolidated capital expenditures for this segment over a roughly 10-year period, committing to approximately $60 billion in investment.

Disney shares fell 1.3% on the announcement.

The plans will see Disney “investing in expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns, consistent with the Company’s continuing approach to allocate capital in a disciplined and balanced manner.”

The decision has been made due to the company’s “strong” financial conditions. Cash resources, as well as Disney’s access to capital markets and borrowing capacity, create “adequate resources to fund ongoing operating requirements, contractual obligations, upcoming debt maturities as well as future capital expenditures related to the expansion of existing businesses and development of new projects.”