rfenst wrote:I think Disney may be recording record profits.
Crushing it!!!!
Shares in Walt Disney tumbled 13% to the lowest since March 2020 on Wednesday, as ballooning costs at the entertainment giant’s fast-growing streaming division cast a shadow on strong subscriber additions.
Disney+ has attracted millions of subscribers and will launch an ad-supported tier next month, but executives’ promise of profitability next year and forecast for operating results in the next quarter failed to impress.
The company, led by CEO Bob Chapek, missed analysts’ expectations for fiscal fourth-quarter earnings after a $1.5 billion loss in its streaming division.
“Disney’s streaming results are indicative of the tightrope it is walking,” said Fred Boxa, associate director at technology and management consulting firm Arthur D. Little.
Shares closed $86.75 on Wednesday. They have fallen more than 35% this year, compared with a 20% drop in the S&P 500, battered by a cautious outlook for ad sales and recessionary fears.