Why the market didn't like Disney's quarterly report

On November 10, Disney released its fourth-quarter results, which turned out to fall short of Wall Street analysts' forecasts. The news confused the market, and the company's shares began to decline by 4% at the peak. On the eve of the results announcement, Disney shares finished at $175.11, down about 1% year-to-date. Shares of Netflix, Disney's competitor in the streaming market, have gained more than 25% over the same period.

Revenue growth for the year was 26%: in the fourth quarter of last year it reached only $14.7 billion. Total revenue at the end of the fiscal year was recorded in the amount of $67.4 billion with a growth of 3% year-on-year (in 2020 - $65.3 billion ). The company's media business accounted for $50.8 billion in annual revenue, parks and branded merchandise sales accounted for $16.5 billion. The company's earnings per share were $0.37 vs. $0.51 expected, while revenue reached only $18.53 billion vs. $18.79 expected. .