This week we saw mixed results on Wall Street. The most complicated story to understand is the earnings results for The Walt Disney Company (DIS). Because I always strive for simplicity, below is the easiest explanation of The Walt Disney Company’s mixed earnings results.
On Tuesday, Aug. 4, DIS released its Q3 2020 earnings results with top-line revenue of $11.7 billion dollars. During the same quarter a year ago, the company reported revenue of $20.2 billion, a decline of over 40%. In terms of revenue, this makes Disney the hardest hit member of the Dow Jones Industrial Average during the Covid-19 epidemic.
However, Disney’s streaming service revenue delighted long-term shareholders. Disney+, which was launched on Nov 12, 2019, had 57.5 million paid subscribers as of Jun 27. This number represents more than half the total paid subscribers across all of Disney’s streaming services, which also include Hulu and ESPN+.
If you currently own shares of DIS now is the time to sell and take profits.
The other big earnings story of the week was Square, Inc. (SQ). The company released its second-quarter 2020 earnings, with revenue of $1.9 billion, a whopping 64% year-over-year increase.
Square’s Cash App gross profit jumped 167% year-over-year as customers increasingly used the app as a way to send and spend money. With the Cash App, Square has found a profitable way to adapt to shifting retail trends during the COVID-19 crisis.
I strongly recommend Square, Inc. as a long-term hold.
As we move forward, I will continue to update you as to which WI stocks are winner or losers during this earnings period.
