First Quarter 2021 Results

[middlechild]

"Disney (DIS) reported fiscal first-quarter results Thursday that handily topped expectations, with the company’s streaming growth serving as a counterweight to the weakness in its more virus-exposed theme parks and experiences businesses. The entertainment giant posted an unexpected profit, whereas another quarterly loss was expected. Subscribers to Disney+ also surged even more than expected to 94.9 million, or well ahead of the 90.2 million anticipated. Shares jumped more than 2% in late trading after the results were released."
This excerpt taken from:
https://finance.yahoo.com/news/disney-reports-fiscal-q1-2021-earnings-results-144657907.html
Sounds very positive over expectations. Much gloom and doom were the buzz, however the clouds did partially dissipate.
Given revenue was down, just not down as much expected, perhaps this is why the stock is down today? From that same article:
"While Disney still posted a third straight quarter of revenue declines, the drop was not quite as severe as expected, even as most of Disney’s lucrative theme parks, cruises and other experience-based businesses remained pressured by the pandemic. "

Did anyone sit on the investors call?

 

[Br'er Rabbit is the Best]

I sat in on the call. Stock market is weird. When the earnings report was released the price rose from 190 to 198. Then by the end of the call it had dropped to 194. Today it closed at 187.56. Basically, for the most part the stock market is priced for future expectations. I don’t think anyone is buying or selling Disney stock based upon how they are doing right now. It’s all based on what is expected as the company opens back up and Disney+ continues to grow. The argument against the stock price increasing is all of those items are baked into the price right now. Therefore, there’s no reason for an increased price after a relatively uneventful earnings call. Not saying I agree or disagree, but that hopefully helps.