Right now, Disney is riding high. Avengers: Endgame is on its way to cracking $2.5 billion worldwide, and perhaps most importantly, it was well received by fans and critics alike, who saw it as a fitting conclusion to the Infinity Saga, which has been going on since 2008. They recently closed a deal that had them acquire most of 21st Century Fox for $71.3 billion — a move that will likely have long-term benefits for them. There’s a Star Wars film coming later this year — a film that will cap off decades of storytelling with the final film in the third trilogy of the Skywalker Saga.

Finally, they are also launching their own streaming service, and bringing all of their big properties with original content. They seem unstoppable, right? Well, according to THR, there are some signs that 2020 could be a bit of a hangover year, and that 2019 could be looked back on as a “peak” year for them.

Next year will only see two Marvel movies released for them — their fewest since 2017 (Not counting The New Mutants — and none of the movies will be capstone titles), we will be getting no Star Wars movie, and Avatar has been pushed back to 2021. Additionally, the costs of Disney+ and ESPN+ streaming services will be eating up about $460 million in resources in the current quarter alone, and next year, they intend to spend $2.5 billion in 2020 for original and licensed content for Disney+. They expect to spend $4.5 billion annually in 2024, and don’t expect to make a profit until that same year.

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“The costs are definitely making their way to the financial statements, “Moody’s lead analyst Neil Begley told the outlet. “I’d say Disney is entering a high-scale investment cycle, and they’ll eventually feel a hangover.”

In short, they are spending a lot of money, and that is going to show up on their bottom line very soon, and it could lead to a hangover effect. That being said, it’s worth mentioning that these are investments and as such, this short term loss is to be expected. We will better be able to tell whether or not all these investments were worth it well into the 2020s, but it’s clear that Disney has been making some bold choices lately.

If nothing else, Begley believes that, for the long term, the conglomerate is making the right decisions, even if the immediate horizon seems a bit mediocre.

What do you think of this? Are you worried that the House of Mouse is spreading itself too thin? Let us know down below!

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SOURCE: THR