Big Tech Are Soaring, But Disney Is A Reality Check On COVID-19 Crisis

Disney is giving us a reality check this week. Last week’s earnings announcements among the tech giants were exuberant. Each made robust gains in sales, prompting a bewildered Paul Krugman to conclude in the New York Times that “the stock market is not the economy.” The share price of big tech could go up, despite the shrinking economy and skyrocketing unemployment.

That’s not the same on Main Street. The Walt Disney Co. reported on Wednesday night that profits dove more than 90% in the second quarter. And its share price declined more than 30% so far this year, for a company, until now, has been held as the best example of a traditional organization transforming into a digital winner.

Read More: Forbes