Disney Stock Soars After Earnings Beat and Sports Streaming Service Announcement

Disney stock experienced a significant surge in value following the release of their Q1 earnings report. The entertainment giant exceeded expectations, reporting a 23% increase in adjusted earnings per share and generating nearly $5.5 billion in direct-to-consumer revenue for the quarter.

While revenue growth slowed for the third consecutive quarter, Disney’s streaming platform, Disney+, still managed to beat estimates with 149.6 million subscribers. Additionally, the company announced plans for a new collaboration with Epic Games, the developer of the popular game Fortnite, to create a new games and entertainment ‘universe.’

Disney also secured the streaming rights to ‘Taylor Swift: The Eras Tour,’ which will make its debut on Disney+ next month. Meanwhile, the Dow Jones behemoth faces a three-way battle for control of its board with Trian Fund Management and Blackwells Capital vying for influence.

In another major development, ESPN, FOX, and Warner Bros. announced a joint venture to launch a new sports streaming service this fall, featuring content from these major entities along with top U.S. sports leagues and tournaments. The service will have a new brand, independent management, and allow subscribers to bundle it with other streaming services.

Following the announcement, Disney stock jumped over 7% in after-hours trading. It remains to be seen how the company’s ongoing board battle will unfold, but these recent developments have certainly bolstered investor confidence.