The Walt Disney Company stock has taken quite the dive this morning, with Disney stock plummeting nearly 9% since yesterday.
Disney stock (DIS) dropped in premarket trading after their disappointing first-quarter report. Yesterday, after their second-quarter report, it dropped even more. This also comes after a surprise decline in Disney+ subscribers in Quarter 1 and Quarter 2.
Like the last drop in subscribers, this drop stemmed from Disney+ Hotstar, which is offered in India and parts of Southeast Asia. Last year, Disney lost streaming rights to Indian Premier League (IPL) cricket matches, leading to the service losing 3.8 million subscribers in quarter one. In quarter two, Disney+ Hotstar lost 4.6 million subscribers.
The Walt Disney Company has also stated that they are currently focused on raising prices and cutting costs, which apparently does not sit well with shareholders.
During the second-quarter report, it was announced that Disney is expecting the domestic Disney Parks (Disneyland Resort and Walt Disney World Resort) to have a lower Q3 2023 revenue than in Q3 2022.
The reasons Disney gave for the revenue being lower were due to the new Cast Member contract and the end of the 50th Anniversary celebration at Walt Disney World.
CEO Bob Iger said during Wednesday’s earnings call that they are “closely evaluating” for growth and expansion opportunities at Disney Parks.
There has also been a lot of controversy surrounding the company with the ongoing battle with Florida Governor Ron DeSantis.
It is worth noting that the markets in general are down today, with the Dow Jones Industrial Average down approximately 355 points.
Are you a Disney shareholder? What do you think of this big dip in the stock? Let us know in the comments.
In the meantime, check out our articles about the Q2 report here:
- Disney+ Lost 4 Million Subscribers in Q2 2023
- Disney Parks Made $7.78 Billion in Revenue During Q2 2023
- The Walt Disney Company Announces Nearly $22 Billion in Q2 2023 Revenue