Dive into Disney’s Stock Plunge: What’s Next for the Entertainment Giant?
Disney, the entertainment giant and Dow’s worst performer, has seen its stock plummet nearly 9% since yesterday’s closing (WDW News Today). The cause of the sudden drop is attributed to a surprise decline in Disney+ subscribers and uncertainty over streaming profitability, as well as ad weakness (Barron’s, Variety).
The total Disney+ subscribers came in at 157.8 million, which is below estimates for 163.5 million, and down 2% from the December quarter (Barron’s). This drop has raised concerns over the path to streaming profitability, especially since consumers love streaming content but even the most prominent media companies are still grasping to make the trend work financially (MarketWatch).
Additionally, the decline in Disney+ subscribers was not the only problem Disney faced; their battle with Florida also played a role in their recent stock troubles. Investor’s Business Daily reported that Disney narrowed its losses, but the slowing growth in subscribers, along with Disney Executive Chairman Bob Iger addressing the DeSantis Row, contributed to the fall in their stock.
Following the release of the company’s second-quarter report, which showed a drop in earnings, Walt Disney Co (NYSE: DIS) shares continued to trade lower (Benzinga). Despite the slip, some believe Disney shares, which slumped following their latest report, could be a buy, with a Motley Fool article suggesting that Disney’s stock may be an absolute bargain right now.
As of now, the bottom for Disney’s stock is not in sight (Seeking Alpha). The company’s fiscal second-quarter earnings disappointed investors, and with streaming profits still uncertain, it remains to be seen what the future holds for the entertainment behemoth.
In summary, Disney’s stock has taken a significant hit, primarily due to a drop in Disney+ subscribers and doubts surrounding streaming profitability. As a result, investors remain cautious as they anticipate the company’s next move.
