Walt Disney Company Stock hits a multi-year low after 4th Quarter Earnings Report
According to Deadline, Disney stock has fallen more than 11% today on double its normal trading volume, as investors recalibrate their expectations in light of a shaky quarterly earnings report.
The single-day plunge was the biggest for Disney shares since the onset of Covid in the U.S. in March 2020, when it also fell 13%. The shares have fallen more than 43% in 2022 to date, compared with a drop of less than 10% for the Dow Jones Industrial Average.
Disney’s theme parks, which bounced back quickly from COVID-19 amid increased attractions, price hikes, and updated technologies like the Genie+ app, missed expectations in the quarter as recession fears pressured consumer demand.
Revenue from the company’s parks, experiences, and consumer products division came in at $7.43 billion (vs. estimates of $7.59 billion), with operating income hitting $1.51 billion (vs. estimates of $1.9 billion). Shanghai’s Disney Resort remains closed amid strict COVID-19 protocols in China, and the company revealed it has “no visibility on the reopening date” for the Shanghai location.
CEO Bob Chapek said in prepared remarks that Disney expects streaming losses “to narrow going forward” and that Disney+ remains on track to achieve profitability in fiscal year 2024, “assuming we do not see a meaningful shift in the economic climate.”
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