Shares of Walt Disney Co. (DIS) fell 13% after the company reported disappointing third-quarter
results, the biggest one-day decline since September 2001 and erasing all the gains the stock
achieved during the pandemic.
The sharp drop in Disney’s share price came after the entertainment company reported that
losses at the company’s direct-to-consumer arm, which includes the Disney+ streaming service,
more than doubled to $1.47 billion U.S. in the July through September period.
Weak advertising revenue, particularly at Disney’s cable-television unit, also hurt the company’s
financial performance.
Consequently, Disney’s stock dropped 13% on Wednesday (November 9) to $86.75 U.S., the
lowest closing price since before the pandemic began in March 2020.
It was also the biggest one-day drop in Disney stock since September 17, 2001, the day
markets reopened after the 9/11 terrorist attacks on the U.S.
Disney continues to focus on streaming as a major growth driver. On December 8 this year, the
Mouse House plans to begin offering an ad-supported tier of Disney+ for a monthly fee of $8
U.S.
Year-to-date, Disney’s stock is down 45%. Over the past five years, the shares have declined
17% to their current level of $86.75 U.S.
