Disney Stock Plunges on Streaming Losses: Time to Buy the Dip?
Shares of Disney (NYSE: DIS) dropped nearly 9% on Thursday after the entertainment giant reported results that disappointed investors. Revenue was up 13% year over year in Disney's fiscal second quarter, which ended April 1, but adjusted earnings per share declined by 14%. Relative to analyst expectations, those results were mixed.
It was Disney's streaming business that grabbed headlines. Direct-to-consumer revenue was up 12% to $5.5 billion thanks to higher pricing, but subscriber growth hit a wall. The number of Disney+ subscribers in the U.S. and Canada dipped 1% from the end of 2022, while the total number of Disney+ subscribers globally fell 2%. Hulu and ESPN+, the company's other streaming services, gained minimal new subscribers.
Subscriber losses for the Disney+ service seems to have investors worried. The direct-to-consumer segment is also still unprofitable, losing $659 million on an operating basis in the second quarter. With the stock down hard on this news, should savvy long-term investors take advantage?
Source Fool.com
