Disney Earnings Set Up Next Quarter Concerns
"Yeah. So Disney it uh reported yesterday with sales that were behind expectations. Um it also said that next quarter will be affected by expenses tied to huge releases like the next Avatar film and Zootopia 2. The company not told Bloomberg that it's investing in areas such as bundling with other streaming platforms and this is going to cost money and to profits but u investors weren't exactly pleased."
The commentary highlights that Disney's recent earnings fell short with sales lagging expectations and higher upcoming expenses related to major film releases, raising concerns for next quarter.
Caution on Disney's Mixed Q4 Performance
"So Disney reporting sales the sales fell short of expectations and uh big budget films like the new Avatar picture that's going to weigh on results. Revenue for the fourth quarter little change at 22.5 billion. The earnings uh $111 a share. So that's a beat. Uh Disney's entertainment division faces a number of challenges on several fronts. Streaming films and TV. Uh they predict $375 million in operating income from online video in the first quarter. That's higher uh for the business, higher profit, but Wall Street was expecting more. You also have these expenses tied to Zootopia 2 and Avatar Fire and Ash. That's going to reduce earnings by $400 million."
The speakers detail Disney's mixed Q4 performance with underwhelming sales and rising expenses from upcoming releases and theme park investments, questioning the company's blue-chip status. They highlight the challenges in the entertainment division as streaming competition intensifies.
Disney Earnings Impact Commentary
"Disney on a backfoot uh down 3.1% after these earnings in the pre-market. The sales fell short of estimates and they posted roughly flat revenue and a decline in operating income during the previous quarter. But another major worry for the path forward for Disney is expenses. The entertainment company said a slate of big budget films will weigh on expenses and results in the next quarter. They cited expenses tied to the release of Zootopia 2 and another Avatar movie will reduce earnings by 400 million. They also claimed that their theme park and cruise unit will have an additional 150 million in expenses in the first quarter tied to new ships and dock work. So, Disney shares on a backfoot after these worries over expenses down around 3% in the pre-market."
The commentary outlines Disney's earnings challenges, noting a 3.1% pre-market drop driven by missed sales estimates and upcoming expense pressures from big-budget films and theme park investments. Although long-term earnings are projected to grow by fiscal 2026, near-term results appear subdued.
Weak Earnings and High Expenses Weigh on Walt Disney (DIS)
"Walt Disney. Okay, so this stock down about 9% falling to the lowest level since May. We're talking about Disney, ticker DIS. The media company missed revenue expectations. They also said expenses for its film studio would weigh on the current quarter because they're I guess really paying the big bucks for Zootopia 2 and Avatar Fire and Ash. But really weighing on the stock here, weak earnings."
Walt Disney (DIS) shares are down about 9% amid missed revenue expectations and increased film studio expenses, signaling potential near-term weakness in earnings.
Walt Disney Earnings and Q4 Guidance Concerns
"Walt Disney ticker DIS right now down about 8% worst performer in the S&P 500. This comes after earnings underwhelming forecast missing on revenue. Talking about expenses for their film studio weighing on the fourth quarter. Bloomberg Intelligence basically saying that guidance is going to be underwhelming given no major changes to their prior forecast. I personally, unlike John Tucker, am very excited to see Avatar. I'm going to see it in 4D and probably spend 45 on the seat, but it'll be worth the three-hour experience."
The commentary on Walt Disney points to a significant 8% decline amid disappointing earnings forecasts and concerns over high film studio expenses impacting Q4. Despite a personal note about excitement for the upcoming Avatar release, the overall tone underscores caution regarding the stock's near-term performance.
Disney Earnings Disappointment and Strategic Concerns
"Okay. So Disney reporting sales, the sales fell short of expectations. And big budget films like the new Avatar picture that's going to weigh on results. Revenue for the fourth quarter little changed at 22 and a half billion dollars. The earnings dollar 11 a share. So that's a beat. Disney's entertainment division faces a number of challenges on several fronts streaming films and TV. They predict $375 billion in operating income from online video in the first quarter. That's higher for the business, higher profit. But Wall Street was expecting more. You also have these expenses tied to Zootopia, too, and Avatar, Fire and Ash, that's going to reduce earnings by $400 million. I kind of wonder why they're releasing Avatar, what, December 17th, I think. Yeah, they're not going to capture a lot. I know. I don't get it. Usually they do it before Thanksgiving. Then you have the theme park and cruise unit experiences. They're going to have $150 million in planned expenses in the first fiscal quarter. New ships and dock work for the. Yeah, I don't know. They're doing the one I had two or three new ships and each one of the ships is like $1,000,000,000 or something. I went back and looked, you can do this on the Bloomberg. A ten year per year return of Disney is 1% per year. Yep. Is it a failed blue chip? I mean do we. It's it's a tough business and it's a business that's dealing with this all this disruption from the Internet and Netflix."
The commentary highlights Disney's mixed earnings where EPS beat expectations but revenue fell short. Significant challenges include high-budget film releases and large planned expenses, which cast doubt on the company's strategic scheduling and overall competitiveness in the disrupted entertainment industry.
Disney Faces Distribution Dispute Over Broadcast Fees
"A little bit of drama with Disney. Um, apparently Disney asked YouTube to restore the broadcast of its ABC network ahead of election day. Uh they're having a fight over distribution fees. So subscribers to YouTube TV have lost their access to Disney channels like ABC, ESPN, NFX on October 31st after the two companies basically failed to come to an agreement around their new programming costs."
Disney is embroiled in a dispute with YouTube over distribution fees, resulting in loss of access for subscribers to several key channels. The issue raises concerns about how fee negotiations might impact Disney's revenue and market dynamics in a competitive streaming environment.
Company Commentary: Distorted Financials and Hidden Risks
"And heres the bare case. Revenue is distorted. Cash flow is deeply negative. Profit is driven by unrealized Bitcoin gains and isnt coming from real operations. The AI side isnt generating genuine revenue yet, and key contracts are missing from the books because of accounting tweaks. That lack of transparency makes it hard to value the business and raises the risk of being completely wrong. This shell game between real growth and nothing shows why most investors miss the hidden dangers in the headline numbers."
The speaker provides a detailed commentary on the companys financials, noting that while headline figures appear impressive, underlying financial distortions and hidden risks persist. Revenue numbers are distorted with significant non-operational profit driven by unrealized Bitcoin gains. Additionally, the AI segment has yet to produce real revenue, and key contracts are obscured by accounting methods, increasing valuation risk.
Company Commentary on AMD's AI Accelerator Business
"Our recent conversations across the supply chain point to AMD experiencing slowing progress with its AI accelerator business. We think makes it increasingly challenging for them to meet over high expectations. This year conversations we show signs that AMD is struggling to grow for many of the customers that announced at its AI event this summer. Market remains challenging with highly demanding customers. Many of the headline customers have only purchased evaluation systems that are unlikely to convert into volume orders for at least one generation of MI systems."
The speaker provides an in-depth commentary on AMD, highlighting concerns regarding its AI accelerator business. He notes that despite a high-profile OpenAI-related event, AMD is facing challenges as many customers have only committed to evaluation systems rather than full volume orders, which could hinder future growth.
Data Dog Company Commentary: Cautious Outlook on Growth and Momentum
"For financials, a 10 is a fortress, a one is yikes, lose at a six. Rick, you're at a seven. Data Dog has a clean balance sheet and revenue growth is holding steady in the high 20%. However, guidance suggests it will slow to the low 20s in the second half of the year. While revenue growth was 74% in the same quarter last year, there is slowing momentum, compounded by a 15% increase in share count due to stock-based compensation."
The speakers provide a detailed look at Data Dog's financials, noting a strong balance sheet and steady revenue growth in the high 20s, but caution that guidance points to a slowdown in growth alongside rising share-based compensation. This mixed view highlights a quality product facing potential headwinds in momentum.