Stock Market Update

[BRIEFING.COM] The major averages continue to chart session lows at midday. 

Walt Disney (DIS 106.30, -10.35, -8.88%) remains the weakest performer in the S&P 500 today, trading sharply lower after edging past Q4 EPS expectations but missing on revenue, which was down 0.5% year-over-year to $22.46 billion, marking the company's first annual revenue decline since 1Q24.

Top-line weakness stemmed mainly from ongoing pressure in the Linear Networks business. Segment revenue plunged 16% year-over-year, and operating income dropped 21%, driven by cord-cutting and a persistent downturn in ad spending. The film slate was less robust than last year, when blockbusters like Inside Out 2 and Deadpool & Wolverine drove strong comps. As a result, content sales/licensing revenue declined 26% to $1.90 billion.

Direct-to-Consumer (DTC) remained a bright spot for Entertainment, with revenue up 8% to $6.25 billion and operating income surging 39% to $352 million. Disney+ exceeded subscriber expectations, adding 3.8 million for a total of 132 million. Disney implemented another price hike in October, reflecting its emphasis on profits over subscriber growth.

Experiences posted solid results, with revenue up 6% to $8.77 billion and operating income up 13% to $1.88 billion.