Today is Wednesday, November 9, 2022.
New to this newsletter? Sign up here.
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.
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
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
My Bad: Meta’s Mark Zuckerberg Says He Is Accountable as Company Preps for Mass Layoffs (The Wall Street Journal)
Not Good: GoodRx Shares Slide 10% on 4Q Guidance, 3Q Results (MarketWatch)
Dose of Downgrade: Novavax cuts full-year revenue forecast again amid weak demand (Reuters)
Crashing: Online Car Retailers Are Struggling; Vroom Reports $50 Million Loss This Quarter (Jalopnik)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.