Disney Rallies on Strong Disney+ Results

It’s only been one day but Disney+ looks like it’s a big hit. So far, 10 million people have ordered the streaming service. Bear in mind that it’s only available in the U.S., Canada and the Netherlands.

The shares gained $10.14 today, or +7.32%.

Disney+, with its trove of Disney classics, princess pictures, preteen treasures and of course successful franchises such as Star Wars and Marvel movies, has attracted 10 million subscribers one day after its debut, Disney said Wednesday.

That was “eye popping” and “considerably higher” than many on Wall Street expected, Dan Ives at Wedbush said in a note.

“This speaks to the 1-2 punch of success that (Disney Chief Executive Bob) Iger and Disney have coming out of the gate with unmatched content and a massive brand/distribution that makes the House of Mouse a legitimate streaming competitor on Day One” to Netflix Inc.

Netflix NFLX, -3.05% shares closed 3% lower. Netflix last month announced a net addition of 6.77 million subscribers in its third-quarter earnings, but projected 7.6 million additions in the fourth quarter, fewer subscriber additions than Wall Street had expected. Netflix has about 60 million subscribers.

Disney’s goal of having 60 million to 90 million Disney+ subscribers in five years could be fast-forwarded by two years at this pace, Ives said.

Posted by on November 13th, 2019 at 10:23 pm


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