Disney Stock Tumbles 9% Amid Streaming Transition Struggles
Disney shares plunged 9% Thursday after fourth-quarter earnings missed analyst expectations. Revenue stagnated at $22.46 billion while operating income declined 5% to $3.48 billion. The entertainment giant's direct-to-consumer segment showed modest growth, with revenue rising 8% to $6.25 billion and operating income jumping 39%.
Investors remain skeptical about Disney's ability to navigate the shift from linear TV to streaming. The company continues facing execution challenges with its massive theme park and cruise investments. CEO Bob Iger positioned Disney+ as more than a content platform—envisioning AI-powered commerce, gaming, and user-generated content integrations.
The stock has languished NEAR $100 since 2022, half its 2021 peak. While streaming profits grow, Disney's multibillion-dollar bets on digital transformation and experiential entertainment have yet to convince Wall Street.