The market is not giving any sort of optimism here. Why are they beating up so hard on Disney. Yeah.I think after, you know, Caroline, you come off of fiscal 2025 delivering 19% EPS growth, you know, you obviously have some very solid momentum in the business. Yes. Granted, fiscal first quarter of 2026 looks a little light there, dealing with a lot of different cost issues, whether it's on the studio side in terms of launch costs for cruises.So there's a little bit of all of that that they have to contend w ...

bring in Barton Crockett who's a senior analyst at Rosenblat Securities along with Julia Boren. I always love it when we get to sit at the same table together. Julia, let me ask you, when they're talking about being broad, are they trying to be all things to all people at all times.>> I think it's really about general entertainment that's founded with its sort of origin on this this family brand of Disney. And if you look at the strength of this new bundle, they said of new subscribers to their ESPN app, th ...

Core Insights - John Malone, the outgoing chairman of Liberty Media, likened the perspectives of Warner Bros. Discovery (WBD) and its potential buyers to the parable of The Blind Men and the Elephant, indicating that different bidders have varying views on the company's value and potential [1][2] Group 1: Bidders and Perspectives - There are three to four aggressive bidders for WBD, each perceiving the company differently based on their strategic interests [2] - Larry Ellison views WBD as a global technology platform that could leverage AI for significant advancements in social networking and streaming, while Netflix sees it as an opportunity to enhance its library and production capabilities [2][3] Group 2: Sale Process and Offers - WBD has initiated a formal sale process after receiving offers from Paramount, which was recently acquired by David Ellison's Skydance [3] - Other companies, including Netflix, Comcast, and Amazon-MGM, are also exploring potential offers for WBD's studio and streaming businesses [3] Group 3: Strategic Considerations - Malone suggested that a deal with Netflix would be less disruptive to Hollywood compared to merging with another studio, which could lead to synergies and reduced activity [4] - The regulatory landscape for such deals is complex, with varying domestic and international considerations that could impact outcomes [4] Group 4: Company Challenges and Plans - WBD is facing significant challenges, including a large debt load from the Discovery-WarnerMedia merger and a decline in linear television viewership [5] - The company is pursuing a plan to split into two entities: one focused on streaming and studios, and the other on global linear networks [5][6] - Malone expressed hope that the split would occur without interference, although unexpected offers from Paramount have complicated the process [6]

The U.S. stock market is tumbling toward one of its worst days since its springtime sell-off, as Nvidia and other AI superstar stocks keep dropping Thursday on worries their prices shot too high. Wall Street is also questioning whether the coming cuts to interest rates that it’s been banking on will actually happen.The S&P 500 sank 1.5% and pulled further from its all-time high set late last month. It’s on track for its worst day in a month and its second-worst since plunging in April after President Donald ...

Company Performance - Disney beat earnings expectations but missed on revenue [1] - TV networks and a soft theatrical slate weighed on results [1] Strategic Focus - Discussion of Disney's streaming strategy [1] - Focus on theme parks [1] Industry Issues - Discussion of the YouTube TV blackout [1] - Explanation of rising insurance premiums [1] - Examination of the path ahead for the ACA (Affordable Care Act) [1] - Analysis of what it will take to rein in the country's soaring health care costs [1] Government & Policy - Government starting to reopen after President Trump signed a funding bill, ending the shutdown [1]

Market Overview - The US stock market experienced a significant downturn, with the Nasdaq falling 1.7%, the S&P 500 dropping 1.1%, and the Dow slipping 382 points (0.8%) after reaching new highs earlier in the week [1][12][18] - Tech and AI stocks were particularly hard hit, with major declines in Nvidia, Broadcom, and Alphabet [1][6][7] Sector Performance - Traders shifted focus to value sectors, with healthcare, industrials, and financials showing relative strength, while small-cap stocks also rose [2][12] - The market breadth expanded beyond tech, but overall risk appetite diminished [2][12] Company-Specific Developments - Nvidia's shares fell approximately 4.18% to $185.71, driven by concerns over high valuations in the AI semiconductor market and tightened US export restrictions to China, which constitutes nearly 20% of its revenue [7][8] - Broadcom's stock declined by about 5.65% to $335.16, reflecting similar valuation concerns and competitive pressures in the semiconductor sector [9] - Alphabet's shares dropped around 2.28% to $280.89, amid fears of cooling demand for high-growth tech services and digital advertising [10] Economic Context - The end of the government shutdown added uncertainty to the market, with key inflation and jobs data remaining offline, leading to cautious investor sentiment [4][13] - U.S. Treasury yields increased, with the 10-year note yield rising to about 4.10%, contributing to downward pressure on high-growth tech stocks [15][16] Earnings Reports - Disney's stock fell 9% after reporting mixed fiscal Q4 results, with revenue of $22.46 billion missing expectations, although earnings per share beat estimates at $1.11 [2][14] - Firefly Aerospace's shares surged over 20% following a narrower loss and revenue beat, while Dillard's gained over 8% after reporting revenue of $1.49 billion and a 3% rise in comparable sales [3][14]

Core Insights - The CEO of Walt Disney Co, Bob Iger, emphasized the company's focus on streaming, sports, and studio momentum during the third quarter earnings call, while CFO Hugh Johnston highlighted a shift in strategy towards significant margin gains rather than incremental efficiencies [1][3][4]. Financial Performance and Strategy - Disney's Direct-to-Consumer (DTC) business is projected to grow at double-digit rates, with expected operating leverage driving profitability rather than cost-cutting measures [3][4]. - The company is moving away from relying on financial engineering for margin improvement, indicating a more sustainable growth strategy based on revenue growth, product upgrades, and bundle economics [4][5]. Long-term Outlook - Johnston indicated that margin expansion is expected to continue beyond fiscal 2026, positioning Disney's DTC segment as a significant growth driver for the future [5]. - The company reported an 80% adoption rate of the Trio bundle and noted improvements in advertising CPMs and the performance of the ESPN app, which supports their confidence in platform scale [5]. Investor Implications - The shift in strategy suggests that margin expansion will occur in larger increments rather than gradually, which could lead to a more favorable outlook for Disney's stock performance [6]. - If the company achieves even a portion of the anticipated margin gains, it could signify a new chapter for Disney, characterized by operating leverage rather than previous challenges [6].

Coming up after the closing bell, we'll have just shy of 100 reports. Chief among them will be Applied Materials , joined by Nu Holdings , Credicorp , and JBS , among others.Virgin Galactic : EPS -$1.09 | $365,000 (vs. $395,800) Expects first commercial spaceflight by Q4 2026 Expects most current customers to take flights in 2027That said, here are the big stories making the rounds after hours:The Russell 2000 (-2.8%) fell by nearly 3% at one point. The tech-heavy Nasdaq Composite (-2.29%) had its worst day ...

Core Viewpoint - Disney's CFO Hugh Johnston stated that the company will not participate in the current round of industry mergers and acquisitions, emphasizing satisfaction with its existing portfolio built over the past decade [1][2]. Group 1: Company Strategy - Disney believes it has a strong intellectual property (IP) portfolio, developed through past acquisitions like Fox, Lucasfilm, and Pixar, and does not see the need for further acquisitions at this time [2]. - Johnston highlighted that Disney's integrated ecosystem is functioning well, contrasting with competitors who are splitting their assets, which he views as a sign of weakness in their business models [3]. - CEO Bob Iger has previously considered selling ABC and Disney's cable networks but currently views the linear networks as assets that enhance the overall television business, including streaming [3]. Group 2: Industry Context - Other companies in the industry, such as Warner Bros. Discovery (WBD) and Comcast, are exploring significant structural changes, including potential sales and spin-offs of their linear television businesses [3][4]. - Paramount's owner has made an offer to acquire WBD, while Amazon MGM and Netflix are also considering bids for Warner's studio and streaming operations [4]. Group 3: Financial Performance - Disney's fiscal fourth-quarter results missed revenue forecasts, leading to a 7% drop in share price, despite announcing a 50% dividend increase and a doubled share buyback program of $7 billion [4]. - Johnston emphasized that the commitment to dividends and share repurchases signals strong expected cash flow for the foreseeable future, indicating confidence in the company's financial health [5]. - Johnston believes Disney's stock is undervalued and expects investor confidence to grow over time as the company navigates its transition [5].

10th of a percent. Small cap futures lower by 4/10 of a percent. Let's bring in Kevin Greene, senior markets correspondent, right away, to help set up the action to J.All right. Before we get into, you know, market moves. Let's talk about the shutdown.It's over. But there is still some impact. We have to think about what's your take.Yeah I would agree. I mean obviously as we kind of see the government reopening here, we'll get more economic data hitting the wire. Now some of this data may not even come out. ...