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Following the earnings release, Disney’s stock price did not rally as many investors expected. Instead, it hovered around $110 per share—a figure that has remained relatively stable over recent months. The persistent stagnation indicates investor skepticism about Disney's streaming growth prospects, especially in light of the subscriber loss.
The company's assurances that streaming is profitable did little to buoy the stock price. While Disney includes Hulu in its streaming profitability calculations—Hulu being a substantial asset acquired through Disney's purchase of 21st Century Fox—it complicates the narrative. Hulu, which has enjoyed success and profitability, masks the struggles faced by Disney Plus's own proprietary platform, which continues to grapple with retaining subscribers.