Disney's market value soars by $21 billion after Disney Plus hits 60 million subscribers
• Disney stock jumped as much as 10% on Wednesday, adding more than $21 billion to the entertainment giant's market capitalization.
• Investors celebrated the news that Disney Plus has attracted more than 60 million subscribers in its first nine months.
• However, Disney's revenue plunged 42% last quarter as pandemic-related closures of theme parks, stores, and cinemas hammered its business.
• Lower revenues and $5 billion in restructuring and impairment charges translated into a $4.5 billion net loss last quarter.
Disney stock soared as much as 10% on Wednesday as investors cheered strong growth at Disney Plus last quarter, boosting the entertainment giant's market cap by about $21 billion to $234 billion.
The company's revenue slumped 42% to below $12 billion last quarter as sales plummeted 85% in the parks, experiences, and products division and 55% in the studio business.
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Those sharp declines reflected prolonged closures of theme parks, stores, and cinemas to combat the spread of the virus.
Disney's lower revenue, combined with $5 billion in restructuring and impairment charges, fueled a net loss from continuing operations of $4.5 billion — a sharp swing from $1.6 billion in net income in the same period last year.
However, the company's Disney Plus streaming service continued to serve as a partial hedge against the pandemic.
More on: markets.businessinsider.com