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Several operational disruptions have taken a toll on the company due to the COVID-19 pandemic and consequent lockdowns that necessitated the closure of its theme parks and suspension of its cruise line departures. The company incurred significant revenue losses. However, its Disney+ streaming service thrived. The “Black Widow”, which debuted on Disney+, took in $80 million in domestic box office receipts in its opening weekend, making it the biggest premiere since the pandemic began.
DIS shares plummeted 7% in price on November 11, marking it their worst session since June 2020, after the company reported a slowdown in subscriber growth for its streaming service. The company also missed consensus estimates for its top and bottom lines in its last reported quarter. Disney added 2.1 million Disney+ subscribers to hit 118.1 million, in line with CEO Bob Chapek’s prediction of “low single-digit millions” of fourth-quarter streaming subscribers back in September. Also, DIS is facing competitive threats from Netflix Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN).
