Disney Rallies Investor Confidence with Price Hikes and Cost Cuts
Walt Disney Company (DIS) CEO Bob Iger took steps to reassure investors about the company’s streaming business on Thursday, raising prices for its Disney+ service and announcing plans to cut costs.
The price hikes, which will take effect in the U.S. on September 27, come as Disney faces increasing competition from rivals like Netflix (NFLX) and Amazon (AMZN). The company’s streaming services, including Disney+, Hulu, and ESPN+, have collectively lost subscribers in recent quarters.
Iger said the price hikes were necessary to fund Disney’s investments in original content and to make its streaming services more competitive. He also said the company was confident that its streaming business would be profitable in the long term.
In addition to the price hikes, Iger announced that Disney would be laying off 32,000 employees, or about 6% of its workforce. The layoffs are part of a $1 billion cost-cutting initiative.
Iger said the layoffs were necessary to make Disney more efficient and to position the company for long-term growth. He also said that the company would be investing in new businesses, such as its streaming services, and that it would be hiring in those areas.
The price hikes and layoffs are a sign that Disney is serious about its streaming business. The company is confident that its streaming services will be successful, but it is also taking steps to reduce costs and become more efficient.
The moves were welcomed by investors, who sent Disney shares up more than 5% in after-hours trading. The stock is up more than 30% this year.
- 22 Sep
HDFC Bank stock expected to re-rate in next 12-18 months, says Motilal Oswal’s Nitin Aggarwal
Aggarwal is bullish on HDFC Bank's long-term prospects, but he believes that investors should wait and see how the bank executes in the near term.
- 22 Sep
Sai Silks’ IPO attracts lukewarm response, analysts raise concerns
Sai Silks Kalamandir's IPO received a lukewarm response with a subscription rate of just 0.07 times. Analysts have raised concerns about the company's high debt levels, intense competition in the industry, and the fact that half of the issue size is an OFS. The company also has 30 percent of its promoter holdings pledged. Despite these concerns, the company's management is confident about its growth prospects.
- 22 Sep
PSU bank shares make a comeback on JPMorgan’s index inclusion decision
PSU bank shares made a strong comeback on September 22, after JPMorgan's decision to include Indian government bonds in its emerging-market index boosted investor sentiment. However, analysts are urging caution with regard to the PSU bank space, citing the risks of investing in smaller PSU banks and the potential for divestment in some of the larger banks. Investors should carefully consider the risks and rewards before investing in PSU bank shares.
- 22 Sep
SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment
The Securities and Exchange Board of India (SEBI) has penalized 11 entities for non-genuine trades, fined 2 entities for flouting disclosure rules, and suspended the registration of 1 research firm for violating regulatory norms. SEBI's actions are a reminder to market participants that they must comply with all regulatory requirements. Investors should be aware of these risks and take necessary precautions to protect themselves.
- 22 Sep
Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling
Zaggle Prepaid Ocean Services stock made a muted debut on bourses on September 22, listing at a premium of just 0.6% over the IPO price. Analysts have recommended selling the stock on the opening day, citing its high P/E valuation, debt-to-equity ratio, and negative cash flow.