Why Disney Shares Are Falling Today

The Walt Disney Co DIS is trading lower Thursday after the company announced worse-than-expected fiscal fourth-quarter financial results.

Disney reported quarterly adjusted earnings of 37 cents, which came in below the estimate of 44 cents. The company reported quarterly revenue of $18.53 billion, which beat the estimate of $16.26 billion.

Disney+ paid subscribers totaled 118.1 million, up from 73.7 million year-over-year. The stock may be trading lower as a result of slowing Disney+ subscriber growth. 

"As we celebrate the two-year anniversary of Disney+, we’re extremely pleased with the success of our streaming business, with 179 million total subscriptions across our DTC portfolio at the end of fiscal 2021 and 60% subscriber growth year-over-year for Disney+," said Bob Chapek, CEO of Disney.

"We continue to manage our DTC business for the long-term, and are confident that our high-quality entertainment and expansion into additional markets worldwide will enable us to further grow our streaming platforms globally," Chapek added.

See Also: Why Jim Lebenthal Thinks This Upcoming Catalyst (Not Earnings) Could Move Disney

Atlantic Equities analyst Hamilton Faber downgraded Disney from an Overweight rating to a Neutral rating and lowered the price target from $219 to $172.

DIS Price Action: Disney has traded as high as $203.02 and as low as $134.10 over a 52-week period.

The stock was down 5.73% at $164.45 at time of publication.

Photo: StockSnap from Pixabay.