Disney Snags Two Content Whales

Disney has been struggling with a number of issues ranging from streaming losses to activist investor and political pressures. However, today’s earnings report offered some hope to investors betting on a longer-term turnaround in the stock. 🕊️

The media giant reported $1.22 in adjusted earnings per share on $23.55 billion in revenues. Earnings topped estimates, while revenues were just shy. 

The company’s direct-to-consumer unit reported a $138 million operating loss. But if you include ESPN+, losses across all streaming platforms fell about 80% YoY to $216 million. Cost cuts, price hikes, and investments in content continue to drive the unit toward profitability. 📺

Speaking of content investments, investors were thrilled to hear that Disney is taking a $1.5 billion stake in Fortnite’s parent company, Epic Games, marking its largest jump into the gaming world yet. Disney will work with the gaming studio on new games and an entertainment universe. 💰

It’s also betting that Taylor Swift can boost Disney+ subscriptions. Beginning March 15th, the company will bring an “exclusive” version of her Era’s Tour movie to the platform. With the NFL and every other brand looking to capitalize on her stardom, Disney wants its piece of the action, too. 🌠

Overall, it appears investors were happy to hear the updates and significant media investments that will serve the company long-term. If the company can push its streaming businesses into profitability and fight off these messy proxy battles, the market may back off enough to let Bob Iger and his team do their thing.

Despite the stock popping 7% after hours, the Stocktwits community is still skeptical. Current sentiment readings are in “extremely bearish” territory as the debate rages on. ⚔️

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Headline Vs. Reality (Media Edition)

One of the perplexing things about markets is that sometimes headlines don’t necessarily match the reaction in markets. And that was certainly the case today in struggling media giant Warner Bros. Discovery. 📰

The Hollywood Reporter wrote an article boasting that Warner Bros became the first Hollywood conglomerate to turn a full-year streaming profit ($103 million).  

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Target Hits Its Mark With Membership Push

Once companies discovered that membership and loyalty programs drove additional customer visits and spending, there became apps for everything. Trust me, I’ve got the McDonald’s app on my phone because I get free fries or something with my occasional purchase… 📱

Nonetheless, this shit clearly works, and everyone wants a part of it. Given Target’s recent struggle, it’s not surprising that it’s jumping on the bandwagon as part of its turnaround strategy. 

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CrowdStrike Bucks The Cyber Selloff

After Palo Alto Networks and other cybersecurity stocks failed to meet expectations, the market highly anticipated CrowdStrike’s earnings after the bell. And unlike its peers, the company delivered big time, so let’s take a look. 👇

Adjusted earnings per share of $0.95 beat expectations of $0.82, while revenues of $845 million topped the $839 million anticipated. Notably, the firm has reported GAAP net income for the past four quarters, and management expects that trend to continue. 💵

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BJ’s Beats Costco For The Day

Today’s action shows that BJ’s may have a branding problem in the retail investing community. Despite the company’s results topping expectations today, sentiment readings from are community are still weaker than you’d expect. 🤔 

BJ’s Wholesale Club revenues grew 8.70% YoY to $5.357 billion, with adjusted earnings of $1.11 per share. While earnings topped expectations, revenue was slightly below, with executives citing an uncertain macroeconomic environment as the primary driver.

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