The Walt Disney Company, a titan in the world of entertainment, is making headlines this week with a nearly 3% dip in premarket trading ahead of its upcoming earnings report. Wall Street analysts are anticipating a positive outcome, expecting quarterly earnings to hit $1.20 per share—a 16.5% year-over-year increase. Revenue forecasts are equally optimistic, with estimates pointing to a 2.4% increase, bringing the total up to $22.86 billion for the quarter. Interestingly, the consensus earnings-per-share estimate has been revised upward by 0.3% over the last 30 days. Additionally, union negotiations in the U.S. recently culminated in a pay deal, averting Disney’s first strike in nearly 40 years. However, the company plans to lay off around 2% of its staff in the Disney Entertainment Television division ahead of Q3 earnings, according to Adweek.
Meanwhile, Airbnb finds itself in turbulent waters, with stock prices set to open over 4% lower. This comes after a 5.1% drop on Friday, attributed to broader market volatility and waning confidence in the U.S. economy. Last quarter, Airbnb surpassed revenue expectations by 3.9%, reporting $2.1 billion—an impressive 17.8% year-on-year increase. However, revenue guidance for this quarter appears less optimistic. The short-let giant is reportedly exploring luxury services like private chefs and massages to bolster revenue and compete more robustly with the hotel industry.
The cryptocurrency market is also experiencing significant fluctuations. Bitcoin was trading 13% lower against the U.S. dollar, with prices dipping to approximately $50,330. This marks the lowest level since February and erases over $15,000 from its price in the past week. The market’s volatility stems from concerns about the U.S. economy’s stability, missing job report expectations, Federal Reserve rate cuts, and the uncertainty surrounding the upcoming U.S. election. Notably, Bitcoin exchange-traded funds (ETFs) have witnessed outflows in the hundreds of millions as investors flock to safer assets.
Pershing Square, headed by renowned investor Bill Ackman, also grabbed attention by abandoning its plan to list a fund on the New York Stock Exchange. The IPO aimed to allow investors to buy into a curated portfolio of around a dozen stocks. Despite an extensive seven-week roadshow promoting the deal, it was scaled back repeatedly before being canceled altogether. On the London Exchange, Pershing Square’s stock plummeted by approximately 7.1% by mid-morning trading.
We’d love to hear your thoughts on these developments. How do you think they will impact your investment strategies? Let’s get the conversation started in the comments below. Don’t forget to share this story with your friends and fellow Disney aficionados!
Source: Lucy Harley-McKeown
