Disney Stock Plunges 11% To New Multi-Year Low On Earnings Miss, Weak Profit Outlook
deadline.comDisney stock has fallen more than 11% today on double its normal trading volume, as investors recalibrate their expectations in light of a shaky quarterly earnings report.
At $88.53, Disney shares were at their lowest point since 2014, with bears seizing on the company’s much-lower-than-expected profit forecast as well as a significant undershooting of Wall Street expectations for the fiscal fourth quarter.
Disney’s streaming business has proven a bright spot (Disney+ added 12.1 million subscribers to hit 164.2 million globally) but profitability is weighing on investors’ minds.
Traditional businesses like linear TV are under significant pressure from cord-cutting. In a flurry of research notes, analysts debated the puts and takes from the earnings report, with several of them slashing their stock price targets for the company.
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