The entertainment giant Walt Disney (NYSE: DIS) shares fell on Friday following the second-quarter earnings announcement. The company reported 103.6 million paid subscribers at the end of the first quarter, the figure came in below the Wall Street consensus of 109 million subscribers.
"We are on track to achieve our guidance of 230 million to 260 million subscribers by the end of fiscal 2024," $DIS CEO, Bob Chapek said.
Earnings per share: $.79 vs. $.27 expected
Revenue: $15.61 Billion vs. $15.87 Billion expected
However, Disney plus added 8.7 million new subscribers in the second quarter supported by the massive new releases including Wanda Vision and The Falcon and the Winter Soldier. Disney+ is also facing tough competition from Netflix and HBO Max. Currently Disney Plus has roughly half the amount of subscribers Netflix.
On the other hand, the Disney park division revenue fell 44% to $3.2 billion in the last quarter, while the company expects the numbers to rebound as more parks reopen and pandemic restrictions begin to lift. Disney's California theme parks already reopened on April 30 for the first time in nearly 14 months.
“In terms of the parks, and when we’re going to sort of be able to raise our capacity limits, we’ve actually already started that,” - Bob Chapek said.
Disney stock price was down more than 4% in the pre-market trading on Friday and the stock closed 2.6% lower by end of the day. In the short-term, if the bearish momentum continues the next downside levels to watch $160 and $148. On the flip side, the immediate resistance at $184 and then $190.
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