Disney pops 4% as streaming hopes trump earnings decline: Market 'sensing big things are brewing'

Disney pops 4% as streaming hopes trump earnings decline: Market 'sensing big things are brewing'Disney pops 4% as streaming hopes trump earnings decline: Market 'sensing big things are brewing'

Chief executive officer and chairman of The Walt Disney Company Bob Iger and Mickey Mouse look on before ringing the opening bell at the New York Stock Exchange (NYSE), November 27, 2017 in New York City. Disney shares jumped Friday as excitement around the media giant's streaming service overshadowed a sharp profit decline for the previous quarter. The company posted Thursday an adjusted profit of $1.07 per share. That's down 28% from $1.48 per share in the year-earlier period. Disney's earnings did, however, top a Refinitiv estimate of 95 cents a share. Still, Wall Street analysts glossed over the profit decline as Disney gets set to take on streaming giants such as Netflix at their own game. So far, analysts like Disney's chances in the streaming wars as it is expected to gobble up subscribers for the $6.99-per-month service, which will be launched Tuesday. "The market is sensing big things are brewing in the quarters ahead," Michael Nathanson, founding partner at MoffettNathanson, said in a note. "As we have vividly seen at Netflix, when moving in the right direction, momentum in subscriber growth makes those metrics investors' sole focus." Nathanson has a price target on Disney shares of $150, which represents a 12.8% upside from Thursday's close of $132.96. Disney shares traded 4.4% higher around $138. Disney+ will launch next week with hundreds of classic Disney movies, thousands of TV episodes and content that's exclusive to the platform, including The Mandalorian, a series ...
More on: www.cnbc.com