Disney Stock Sinks Despite Top-Line Beat

Core Viewpoint - Walt Disney Co reported better-than-expected fiscal first quarter results, yet shares fell 7.2% to $104.68, indicating market concerns despite strong earnings and revenue growth [1][2]. Financial Performance - The company posted adjusted second quarter earnings of $1.63 per share and revenue of $25.98 billion, both exceeding estimates, driven primarily by the experiences division, including theme parks and resorts [1]. - Streaming revenue from Disney+ and Hulu grew 72% year-over-year to $450 million, showcasing significant growth in the digital segment [2]. Stock Performance - Disney's stock is trading at its lowest level since early December, falling below key support near $108, and is on track for its worst single-day drop since November 13 [2]. - Despite the recent decline, the stock has gained 14.7% over the past nine months, indicating a longer-term positive trend [2]. Options Market Activity - Options traders are showing bullish sentiment, with over 64,000 calls traded, which is eight times the average intraday volume and nearly double the number of puts exchanged [3]. - The most popular options include the weekly 2/6 110-strike call and notable interest in the March 115 calls [3]. Call/Put Volume Ratio - Disney has a 50-day call/put volume ratio of 1.93 on major exchanges, indicating that traders have been buying more than two calls for every put over the past 10 weeks [4].