Disney Follows Netflix's Lead

August 10, 2023

Today is Thursday, August 10, 2023.

The Early Bird Index today is 57.59.

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Disney Follows Netflix's Lead

Walt Disney (NYSE: DIS) posted mixed financial results on Wednesday but the stock still grew by 2.24% in after-hours trading.

Financials: Disney reported earnings of $1.03 per share in the past quarter, which was better than expected. But revenue was only $22.33 billion, which was lower than expected.

Details: The company’s streaming business lost over $500 million in the quarter, which was better than expected, but revenue and the total number of subscribers fell short of expectations.

Powering the Story: The good news is Disney also announced on Wednesday it is raising prices for its streaming services, including Disney+ and Hulu. There will also be a crackdown on password sharing.

Also: Revenue for Disney’s parks business also ticked up higher than expected during the quarter as attendance growth was steady.

Stock Price: Disney’s stock is down nearly 2% in 2023.

Final Thoughts: Disney is now following the examples set by Netflix (Nasdaq: NFLX), in terms of raising prices and stopping password sharing. The company hopes to become profitable in streaming in the future.

Notables

Notable Earnings Today: Alibaba Group Holding (NYSE: BABA), Ralph Lauren (NYSE: RL), Hanesbrands (NYSE: HBI), Krispy Kreme (Nasdaq: DNUT), News Corp. (Nasdaq: NWSA), Utz Brands (NYSE: UTZ), IONQ (NYSE: IONQ), Dillard's (NYSE: DDS), Zymeworks (Nasdaq: ZYME), CyberArk Software (Nasdaq: CYBR), Indie Semiconductor (Nasdaq: INDI), U.S. Foods (NYSE: USFD), Gevo (Nasdaq: GEVO), Himax Technologies (Nasdaq: HIMX), Rigetti (Nasdaq: RGTI), Pagaya (Nasdaq: PGY), Sientra (Nasdaq: SIEN), Amprus (NYSE: APMX), Bakkt (NYSE: BKKT), Wheaton Precious Metals (NYSE: WPM), YETI Holdings (NYSE: YETI), Evolve Technologies (Nasdaq: EVLV), Six Flags (NYSE: SIX), Onto Innovation (NYSE: ONTO), Algonquin Power & Utilities (NYSE: AQN), Beacon Roofing Supply (Nasdaq: BECN), Flowers Foods (NYSE: FLO), Wolverine World Wide (NYSE: WWW).

Notable IPOs Today: LQR House Inc. Common Stock (Nasdaq: LQR).

Notable Equity Crowdfunding Campaigns Ending Today: Martoni's Fire Baked Pizza (Honeycomb), Maya’s Modern Mediterranean (Honeycomb).

Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), Jobless Claims (8:30 a.m. ET), CPI / Core CPI (8:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Applovin’s AI Advancements

Photo by Markus Winkler / Unsplash

Shares of the mobile technology company Applovin (Nasdaq: APP) jumped 24.75% after posting good financial results in after-hours trading on Wednesday.

Financials: Applovin reported earnings of 22 cents per share in the past quarter and revenue of $750 million; both were better than expected.

Powering the Story: The company credited its 28% revenue growth to its artificial intelligence advancements, which investors really liked.

Final Thoughts: In 2023, Aplovin is up 174% as investors flock to tech companies. Will the same growth continue throughout the year?

Plug Power Keeps Losing Money

Plug Power (Nasdaq: PLUG), an electrical equipment manufacturing company, dropped 5.67% in after-hours trading on Wednesday after reporting a bigger loss than what was expected.

Final Thoughts: The stock is down 11% this year as the market for alternative energy for vehicles faces questions about demand.

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Trends to Watch

For the Wynn: Advance bookings at Wynn, Encore trending up, execs say (Las Vegas Review-Journal)

Putting Things Into Perspective: The PayPal stablecoin is bigger news than any bitcoin ETF (Blockworks)

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