Disney Sets Record Low with Stock Drop
Disney stock is dropping and could go even lower after the historic decline following its second quarterly earnings report.
When Disney’s (DIS) stock dropped 9% on Tuesday, the company experienced its biggest drop in about a year and a half.
The company boasted profits on its streaming service, which is the first time that has happened. Disney has been pouring money into its Disney+ service, losing $587 million last year. For its second quarterly earnings report for 2024, the company posted a profit of $47 million. That does not cover the losses from last year, but it is great progress in the right direction.
Disney stock started to fall again on Wednesday as markets opened, dropping 0.29% as quarterly numbers are being processed by the media and investors. Even if the company were to propose major changes to help with its profit margin, it would still be stuck with the albatross of the sharp stock decline that will scare off investors for a while.
Should You Buy the Dip on Disney Stock?
It looks like Disney’s stock numbers are steadily declining, and we anticipate the stock to drop much further today before there is any sign of improvement. The sentiment on this stock has really soured over the last 24 hours, and that may take some time to turn around as investors and news sites dig deeper into the company’s finances.
Disney’s numbers for the second quarter were decent, with gains noted in the streaming service and its theme parks. The company’s theme parks reported a 7% increase for those based in the United States and a 29% increase for the international parks.
What is hurting the company right now is its outlook for streaming. The company plans to invest a lot more money into new content, particularly sports content, and that is going to hurt the profit margin that has been established there. We could see the stock drop even further over the coming weeks as more details emerge about where Disney is spending its money.
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