Disney’s week went from bad to worse on Thursday when the entertainment giant posted streaming subscription results that fell short of Wall Street’s expectations, causing the stock to sink more than 4 percent in after-hours trading.
The subscription miss comes as the Walt Disney Co. is still dealing with fallout from the revelation that it promoted critical race theory to its employees, encouraging them to strive for “equity,” or the “equality of outcome,” and to reflect on America’s “racist infrastructure.”
On Thursday, Disney reported subscriptions for its Disney+ streaming service had reached 103.6 million, which reportedly fell below the Wall Street consensus of 110 million subscribers. The subscription miss was surprising since the company had heavily promoted the new series WandaVision and The Falcon and the Winter Soldier.
The Chinese coronavirus pandemic continued to weigh on Disney’s parks division, resulting in $1.2 billion in lost operating income for the latest quarter.
Disney’s overall revenue was down 13 percent year-over-year, but leaders said sunnier days lay ahead.
