Fast Money Blog- 8/11/23

This week on Wall Street all eyes were on Disney stock (DIS) as the company released its Q3 2023 earnings results. On Wednesday, August 9th, The Walt Disney Company reported quarterly top-line revenue of $22.3 billion, up 4% year-over-year.

As a Wealthy Investor here’s what you need to know:

The Parks & Experiences segment reported quarterly revenue of $8.33 billion, up 13% from last year.  

The Direct-to-Consumer streaming segment took in quarterly revenue of $5.53 billion, an increase of 9.2% year-over-year.

However, don't be fooled; Disney is losing big time. 

Disney Declines

For yet another quarter, Disney’s Direct-to-Consumer segment continues to suffer.

Disney+ lost more than 10 million subscribers in Q3, bringing their paid subscriber total to 146.1 million, down from 157.8 million the company reported in Q2. 

The company reported that their streaming segment posted a quarterly loss of $512 million.  Let me say that again: this $512 million dollar loss is just for this one quarter. 

And that’s not all…Disney’s Content Sales/Licensing Segment, the unit that includes their film and television sales, also saw quarterly operating losses of $243 million.

This makes total sense as ever since Disney decided to go Direct to Consumer and create Disney+, it has lost all it’s back-end revenue from television and cable all across the world. 

This is why Disney stock is not going to advance. There are simply too many losses at this present time and it all goes back to Disney+. 

Therefore, right now I can not recommend Disney stock as a long-term investment.

Tyrone Jackson, The Wealthy Investor