Disney Just Laid an Egg. Time To Sell the Stock?
Despite the market's slump this year, Walt Disney (NYSE: DIS) seemed poised to thrive coming into 2022. The economic reopening has led to a boom in travel demand, supporting Disney's theme parks, while its streaming business has seen strong subscriber growth since it launched Disney+ three years ago.
However, the stock has flopped this year -- down nearly 40% year to date -- and the fiscal fourth-quarter earnings report released Tuesday after hours delivered another disappointment for investors.
The entertainment giant missed analyst estimates by wide margins on both the top and bottom lines. Revenue in the quarter grew just 9% to $20.15 billion, below estimates at $21.36 billion. Adjusted earnings per share, meanwhile, actually declined from $0.37 to $0.30 as its streaming segment loss widened significantly, well below the consensus at $0.57.
Source Fool.com
