Disney Creatively Restructures
Plus, Affirm struggles and cuts staff.
Today is Thursday, February 9, 2023.
New to this newsletter? Sign up here.
Disney Creatively Restructures
The financial results for Walt Disney (NYSE: DIS) set a new path for the company, with the stock jumping 5.40% in after-hours trading on Wednesday.
Financials: Disney reported earnings of 99 cents per share in the quarter and revenue of $23.51 billion; both were better than expected.
Details: Revenue for Disney Parks and Experiences jumped by 21%. Direct-to-consumer entertainment revenue grew by 13% and produced a smaller loss than expected. There was however a higher loss for the streaming service Disney+.
Powering the Story: During the earnings call, Disney CEO Bob Iger announced that the company would restructure into three divisions: Disney Entertainment, ESPN, and Parks/Experiences. The company is also going to lay off 7,000 workers. Iger said that Disney will reshape “around creativity.”
Final Thoughts: The stock may be down by 24% in the last 12 months, but Iger’s message gives shareholders a reason to be optimistic about the future of the company.
Notable Earnings Today: PayPal Holdings (Nasdaq: PYPL), PepsiCo (Nasdaq: PEP), AbbVie (NYSE: ABBV), Cloudflare (NYSE: NET), Canopy Growth (Nasdaq: CGC), Lyft (Nasdaq: LYFT), Philip Morris International (NYSE: PM), Expedia Group (Nasdaq: EXPE), Hilton (Nsadaq: HLT), Aurora Cannabis (Nasdaq: ACB), Kellogg (NYSE: K), DexCom (Nasdaq: DXCM), Duke Energy (NYSE: DUK), Bloom Energy (NYSE: BE), Alteryx (NYSE: AYX), Cameco (NYSE: CCJ), Yellow (Nasdaq: YELL), Veru (Nasdaq: VERU), NGL Energy Partners (NYSE: NGL), Hillenbrand (NYSE: HI), Patterson-UTI (Nasdaq: PTEN), Tenet Healthcare (NYSE: THC), Apollo Global Management (NYSE: APO), ArcelorMittal (NYSE: MT), AstraZeneca (Nasdaq: AZN), BorgWarner (NYSE: BWA), Chemours (NYSE: CC), CyberArk Software (Nasdaq: CYBR), Flowers Foods (NYSE: FLO), Himax Technologies (Nasdaq: HIMX), Kimco Realty (NYSE: KIM), Lumentum (Nasdq: LITE), Masco (NYSE: MAS), Mohawk Industries (NYSE: MHK), Motorola Solutions (NYSE: MSI), News Corp. (Nasdaq: NWSA), PROS Holdings (NYSE: PRO), Qualys (Nasdaq: QLYS), Ralph Lauren (NYSE: RL), S&P Global (NYSE: SPGI), SolarWinds (NYSE: SWI), Tapestry (NYSE: TPR), Tempur Sealy International (NYSE: TPX), Thomson Reuters (NYSE: TRI), VeriSign (Nasdaq: VRSN), Willis Towers Watson (Nasdaq: WTW), Yelp (NYSE: YELP).
Notable IPOs Today: Hesai Group (Nasdaq: HSAI), Neuraxis, INC (Nasdaq: NRXS), NEXTracker Inc. (Nasdaq: NXT), Lucy Scientific Discovery Inc. Common Stock (Nasdaq: LSDI).
Notable Equity Crowdfunding Campaigns Ending Today: Roots & Fruits Juicery (Honeycomb), Sensate (Wefunder).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET).
Affirm Struggles and Cuts Staff
Bad financial results sent shares of Affirm (Nasdaq: AFRM) down by 19.16% in after-hours trading on Wednesday.
Financials: Affirm reported a loss of 98 cents per share in the quarter and revenue of $400 million; both were below estimates.
Details: Things are so bad that Affirm is planning to reduce its workforce by 19%.
Final Thoughts: With lower demand for “buy now, pay later” services, Affirm is struggling. The stock is down 78% in the past 12 months.
Gari Network Gets Aptos Bump
The price of the cryptocurrency for the Gari Network soared by over 30% on Wednesday after announcing that it will adopt Aptos as its preferred L1 blockchain partner.
Final Thoughts: Meanwhile, the price of Aptos dropped by 12% on Wednesday, worse than most other cryptos that day.
Anyone can start speaking a new language in just three weeks with Babbel (Sponsored)
If you’ve always wanted to learn a new language, Babbel will be the most productive 10 minutes of your day. Trusted by over 10 million subscribers worldwide, the subscription-based language learning platform can get you confidently conversing in a new tongue in just three weeks. This isn’t your grade school textbook: the bite-sized lessons, available in 14 languages, teach you localized vocabulary you’ll actually use in the real world. Plus, speech recognition technology helps you perfect your accent. Sign up today and get up to 60 percent off your subscription.
Trends to Watch
Growing Fast: Bitcoin NFTs Explode in Popularity as BitMEX Research Shows 13,000 Ordinals (CoinDesk)
Big Rally: Robinhood plans to buy back shares from Sam Bankman-Fried entity (Axios)
The End of Netflix and Chill: Netflix starts cracking down on password sharing in four new markets, including Canada (TechCrunch)
Too Little, Too Late: Bed Bath & Beyond closing more stores and selling stock to avoid bankruptcy (USA Today)
Back to the Uber: The S&P 500 Dividend Aristocrats Could Eventually Add These Stocks (The New York Times)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Be social: Like our Facebook page and follow us on Twitter.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.