Disney+ Keeps Losing Money

November 09, 2022

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Disney+ Keeps Losing Money

Another media giant is struggling in 2022, with Walt Disney (NYSE: DIS) reporting disappointing financial earnings on Tuesday and shares falling 6.83% in after-hours trading.

Financials: Disney reported earnings of 30 cents per share and revenue of $20.15 billion; both were below estimates.

Streaming Pains: While Disney added 12.1 million Disney+ subscribers and 14.6 million total new streaming subscribers for all platforms in the quarter, the average monthly revenue per paid subscriber dropped.

Blame Game: Disney attributed its financial struggles with Disney+ to higher costs for programming, production, marketing, and technology. The absence of Premier Access releases was also a factor.

Park It: Although revenue for Disney Parks increased to $7.4 billion, it was still lower than what analysts hoped for.

Final Thoughts: Disney, which is down 36% this year, said that it expects Disney+ to be profitable by fiscal 2024 if there is no “meaningful shift in the economic climate.” The Disney+ ad-supported tier comes out on December 8.

Notables

Notable Earnings Today: Beyond Meat (Nasdaq: BYND), Bumble (Nasdaq: BMBL), The Trade Desk (Nasdaq: TTD), Rivian Automotive (Nasdaq: RIVN), Roblox (NYSE: RBLX), Digital Turbine (Nasdaq: APPS), Canopy Growth (NYSE: GRC), Dutch Bros (NYSE: BROS), D.R. Horton (NYSE: DHI), Fiverr International (NYSE: FVRR), ADMA Biologics (Nasdaq: ADMA), Village Farms International (Nasdaq: VFF), Unity Software (NYSE: U), Wendy’s (Nasdaq: WEN), Capri Holding (NYSE: CPRI), RumbleOn (Nasdaq: RMBL), Coupang (NYSE: CPNG), Ionis Pharmaceuticals (Nasdaq: IONS), RingCentral (NYSE: RNG), Applovin (Nasdaq: APP), Hanesbrands (NYSE: HBI), Hecla Mining (NYSE: HL), Hilton Grand Vacations (NYSE: HGV), iRobot (Nasdaq: IRBT), Jazz Pharmaceuticals (Nasdaq: JAZZ), Kinross Gold (NYSE: KGC), Pan Am Silver (Nasdaq: PAAS), Payoneer (Nasdaq: PAYO), Performance Food Group (NYSE: PFGC), Rackspace Technology (Nasdaq” RXT), SeaWorld Entertainment (NYSE: SEAS), Starwood Property Trust (NYSE: STWD), Signify Health (NYSE: SGFY), Tetra Tech (Nasdaq: TTEK), Traeger (NYSE: COOK), Wolverine World Wide (NYSE: WWW), ZipRecruiter (NYSE: ZIP).

Notable IPOs Today: ASP Isotopes Inc. (Nasdaq: ASPI).

Notable Equity Crowdfunding Campaigns Ending Today: PureWild Co (StartEngine).

Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET), WASDE Report (12:00 p.m. ET).

Cryptos Plummet Due to Liquidity Crisis

Photo by Kanchanara / Unsplash

The price of Bitcoin and other cryptos fell on Tuesday after the cryptocurrency exchange FTX faced a liquidity crunch and had to be acquired by fellow crypto exchange Binance.

Details: A surge in customer withdrawals caused the liquidity crisis at FTX. Most cryptos experienced double-digit percentage drops on Tuesday. The FTX token dropped 73%.

Final Thoughts: The fall of FTX reminded traders about the volatile nature of cryptocurrency and why it is still a risky investment for some investors.

AMC’s Soft Industry-Wide Box Office

Shares of AMC Entertainment (NYSE: AMC) dropped 3.02% in after-hours trading on Tuesday. The company’s earnings were better than expected but had a wider net loss.

Final Thoughts: AMC’s stock is down 78% this year. The company attributed its wider net loss to a “soft industry-wide box office” at one point in the quarter. However, AMC also said that its per-patron metrics for admissions revenue and food and beverage spending were above pre-pandemic levels.

Trends to Watch

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