Disney Shares Surge On Q3 Earnings Beat, Then Plummet On Hulu Cost Concerns: What You Need To Know
Portfolio Pulse from Vaishali Prayag
Disney shares initially surged on better-than-expected Q3 earnings but later plummeted due to concerns over a potential $5 billion additional payment for its Hulu stake. Disney reported a 4% YoY revenue increase to $23.16 billion and adjusted EPS of $1.39, surpassing estimates. The streaming business turned profitable, but concerns over Hulu costs impacted investor sentiment.
August 07, 2024 | 6:40 pm
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Disney shares initially rose on strong Q3 earnings but fell due to concerns over a potential $5 billion additional payment for its Hulu stake. Revenue increased by 4% YoY to $23.16 billion, and adjusted EPS was $1.39, both surpassing estimates. The streaming business turned profitable, but Hulu cost concerns weighed on investor sentiment.
Despite strong earnings and profitability in the streaming business, concerns over a potential $5 billion additional payment for Hulu have negatively impacted investor sentiment, causing Disney shares to fall.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100