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Disney Shares Plummet 9% As Subscribers Flee Disney+ Streaming Service

The Disney+ logo is displayed on a TV screen in Paris, December 26, 2019. Chesnot | Getty Images

(CNBC) Disney shares fell nearly 9% Thursday after the company reported subscriber losses at Disney+ during the most recent quarter.

The company, which posted profit and revenue for the period that were in line with Wall Street estimates, reported a loss of four million Disney+ subscribers. That downtick was offset by price increases, which led to a narrowing of operating losses at the streaming unit by $400 million for the fiscal second quarter.


Still, Wall Street expected a gain of more than one million Disney+ subscribers, according to StreetAccount, and the surprise subscriber loss spooked the Street.

Shares of the company closed at around $92 per share Thursday. The stock is now up over 6% for the year year.


Disney will face headwinds from reductions in ad budget, intense streaming competition with Netflix’s new ad tier and continued economic uncertainty, according to a note from Paul Verna, principal analyst at research firm Insider Intelligence.


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