Wall Street Fetes DâAmaro Like a Disney Prince as Earnings Beat Buoys Stock Price
This was Josh DâAmaroâs first earnings report as CEO, and the market treated it as a coronation. Disney shares popped 7% Wednesday after the House of Mouse reported an earnings beat driven by wins across its various businesses, and the new top boss outlined his vision for the storied entertainment company. Itâs a Similar World After All Life under DâAmaroâs reign, which began in March, has not exactly been a fairy tale thus far. The companyâs big AI bet suddenly went bust after OpenAI made the shock decision to shutter video generator platform Sora. Meanwhile, Disneyâs investment in Epic Games is looking like a too-little-too-late foray into the world of video games amid a major dip in playtime for the marquee title Fortnite. Disney promptly slashed around 1,000 jobs in April and more recently told some tech staff that it would cut their stock-based compensation plans. In a memo Wednesday, the new head honcho attempted to turn a new leaf by laying out four strategic pillars: âbreakthrough creative storytelling,â âstrengthening our streaming business through product and technology innovation,â âfully capturing the power of live sportsâ amid ESPNâs ongoing DTC rollout and âbold growth plans at Disney Experiences.â The companyâs earnings show that his plan more or less doubles down on whatâs already working: - Revenue in the entertainment division climbed 10% to $11.7 billion, with its streaming unit reporting an 88% leap in operating income. - Sales in the experiences division, which includes theme parks, jumped 7% to $9.5 billion. Global visits to parks ticked up 2%. Own Goal: On the other hand, âcapturing the power of live sportsâ is a little more costly. While revenue for the ESPN-driven sports unit ticked up 2%, operating income fell, and an NFL rights renegotiation will only generate more pain. What constitutes âbreakthrough creative storytellingâ these days is up in the air, too. The Mandalorian & Grogu movie is tracking for a Memorial Day weekend box office debut of just $80 million, an all-time low for live-action installments of the Star Wars franchise. The force may not be with this one despite Baby Yodaâs fan base. The post Wall Street Fetes DâAmaro Like a Disney Prince as Earnings Beat Buoys Stock Price appeared first on The Daily Upside.
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