Disney’s recent Q4 results painted a blue image of the stock, revealing the firm had fallen short of expectations for profit and key revenue segments, leading to an 8% drop in share price.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, described the results as "disappointing", after large investments into the firm's streaming services has caused "eye-watering" losses. Arthur Castle, equity analyst at Charles Stanley, agreed, stating this had clearly been a bad quarter for Disney "on multiple fronts". He noted the average revenue per user for the firm's streaming services "came in light", while expenses in the direct-to-consumer business remained elevated. This has instilled further disappointment from the market, he said, as consumer spending continue...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
