Disney Transformed Itself in Fiscal 2019
Some people might be wondering how Disney (NYSE: DIS) stock can be up 3% after the company reported a decline in overall earnings. The answer is pretty simple: That money was put to good use.
Whether we like it or not, everything is about streaming right now, and the costs that ate into Disney's fiscal fourth-quarter earnings were largely invested in the start-up of Disney+, Hulu, continued development of ESPN+, and the integration of the Twenty-First Century Fox acquisition. We're talking about a huge content library with multiple methods of distribution. The potential here is such that a simple earnings beat relative to expectations was enough to drive the stock upward.
Image source: Getty Images.
Source Fool.com
