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HomeFinance NewsDisney stock soars with increased savings, dividend hike, and new partnerships.

Disney stock soars with increased savings, dividend hike, and new partnerships.

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Disney’s stock surged after the company posted a major earnings beat and revealed plans for a new sports streaming service. The entertainment giant reported a 23% increase in adjusted earnings to $1.22 per share, as well as a 15% jump in direct-to-consumer revenue. However, Disney+ subscribership fell to 149.6 million, although it still exceeded estimates. Additionally, Disney announced a collaboration with Fortnite developer Epic Games and secured the streaming rights to Taylor Swift’s “The Eras Tour.”

Looking ahead, the company expects to add 5.5 million to 6 million Disney+ Core subscribers in the second quarter and is on track to achieve $7.5 billion in annual savings by the end of fiscal 2024. Disney also anticipates generating around $8 billion in free cash flow for the year and plans to target $3 billion in stock repurchases. Despite the positive earnings report, Disney is currently in a board battle with Nelson Peltz’s Trian Fund Management and Blackwells Capital, as both are seeking control over the company’s board of directors.

Furthermore, ESPN, FOX, and Warner Bros. announced a joint venture to develop and launch a new sports streaming service in the U.S this fall. The new service will combine content from Disney-owned ESPN, TNT, and Fox Sports, offering major U.S. sports leagues, top college divisions, as well as The Masters, FIFA World Cup, and Wimbledon. With all these developments, Disney stock has climbed 26% off a recent low and remains in a buy zone for investors.

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