Disney loses 23 billion market value in one day


DThe latest business figures from Walt Disney not only give stockbrokers serious cause for concern. They flee in droves. The share price of the world’s largest entertainment group fell by a whopping 13 percent on Wednesday. This is a highly unusual price movement in the venerable leading American index, the Dow Jones. Price movements that are otherwise more familiar from tech companies are now hitting Walt Disney hard. From a stock market value of $182 billion on Tuesday, there are just $159 billion left on Wednesday. 23 billion dollars are gone within one trading day.

Disney increased the number of subscriptions to its Disney+ video service by 39 percent to 164 million in the third quarter. Hulu and ESPN+ also made significant gains. Disney thus counted around 235 million users across its three streaming services. Disney’s rival Netflix had just over 223 million at the end of the quarter. However, the numbers aren’t directly comparable since Disney’s balance sheet benefits from combo deals, called bundles. And what the brokers are particularly interested in is that the streaming division made a quarterly loss of $1.5 billion. The hope of stockbrokers is fading, especially since next to the streaming services the amusement parks, which were already badly hit in Corona times, are now struggling with falling profit margins.

In any case, Disney missed Wall Street’s expectations, even though sales rose by nine percent to $20.2 billion. Quarterly profit stagnated at a meager $162 million. A number that hardly has one market value of $159 billion justified after the price drop.

Apple shares also under pressure

The Disney numbers had to be processed in an overall gloomy market environment. The Dow Jones increased its losses during trading and was down around 1.5 percent to 32,670 points on Wednesday evening. The tech values ​​​​in the Nasdaq 100 index even lost 1.8 percent. Further corona restrictions at China’s largest factory site for iPhones caused Apple’s share price to fall by 3 percent. The stock market traders took a positive view of the austerity measures in the Facebook group Meta. The announced 11,000 layoffs were rewarded with a 6 percent price increase.



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