Disney Disappoints -- Is It a Buying Opportunity?
Investors weren't very happy with what they heard from Walt Disney (NYSE: DIS) when it reported its quarterly earnings report for the period ended April 1, 2023. The focus was on a disappointing decline in paid Disney+ streaming subscriptions.
The number of paid subscribers declined by 2% since the start of 2023. Investors panicked since they have been monitoring and waiting to see when the company might turn that segment into a profitable contributor to the diversified company's business. The result was a drop in the stock that brought Disney shares to one of the lowest levels in the past five years.
As Disney accelerated the rollout of Disney+ during the pandemic, then-CEO Bob Chapek expressed confidence that the direct-to-consumer (DTC) service would far outpace ESPN+ and Hulu by attracting between 230 million and 260 million paid Disney+ subscribers globally by the end of fiscal 2024. Chapek also said that Disney+ would reach profitability by that time, which is now about 18 months away.
Source Fool.com
