Disney lost nearly $5 billion last quarter, but stock prices surged

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Walt Disney World reopened on July 11, but Disney has yet to recover the lost revenue from the coronavirus pandemic. Photo by Pixabay.

Disney’s latest earnings report showed a sharp decline in overall revenue, but an increase in Disney+ subscribers was enough to raise the company’s stocks and assuage investors’ fears.

Disney lost $4.72 billion in the second quarter of this year. The theme park division, which was shut down for the majority of the second quarter, lost nearly $3.7 billion. 

Even when Disney’s parks reopened, the attendance numbers were disappointing. The company told investors that they predict more people will come to the theme parks once coronavirus cases drop in Florida. In Anaheim, California, Disneyland has been closed since March due to state regulations.

Despite short-term losses, Disney’s stock prices rose after the company decided to give at-home viewers direct access to new movies, including “Hamilton” and the live-action remake of “Mulan.”  

People can watch “Mulan” next month on Disney+ for an extra cost of $29.99. This is the company’s first experiment with releasing a big-budget film directly to on-demand services. “Mulan” cost $200 million to produce.

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Hosts:
Matthew Belloni, Kim Masters

Producer:
Kaitlin Parker