1 Green Flag for Disney Stock in 2023
Disney (NYSE: DIS) stock hasn't been a magical place for investors to park their cash in 2023. The shares slipped below the market's 7% year-to-date return in mid-May following a fiscal second-quarter earnings report that disappointed Wall Street.
That quarterly update contained bad news around Disney's weak short-term earnings prospects. And the TV segment continued to struggle with declining advertising revenue. But the good news is that management is pivoting the streaming business toward profitability, in part by dramatically scaling back on the amount of content it makes available through its subscription and ad-supported platforms.
Disney's direct-to-consumer business improved this past quarter, in accordance with management's early 2023 forecast. Higher subscription prices and declining marketing costs allowed operating losses in the segment to improve to $200 million from $700 million a year ago.
Source Fool.com
