Disney Creatively Restructures

Today is Thursday, February 9, 2023.

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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.

Notables

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.

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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)

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