What happened
Shares of Walt Disney (DIS -0.69%) soared on Wednesday, following the release of the entertainment conglomerate's third-quarter results. As of noon EDT, Disney's stock was up more than 10%.
So what
Disney suffered heavy losses in its parks and studio segments, as COVID-19 forced the closure of its theme parks and resorts, as well as many movie theaters in the U.S. and international markets. All told, Disney's revenue plunged 42% to $11.8 billion, while its adjusted earnings per share plummeted 94%, to $0.08.
Disney's stock rose sharply on Wednesday. Image source: Getty Images.
However, there were certainly some bright spots in Disney's report. During the company's earnings call, CEO Bob Chapek said more than 60.5 million people now subscribe to Disney+. The popular streaming service's surging growth allowed Disney to hit its goal of 60 million to 90 million Disney+ subscribers by the end of 2024 four years early, due in part to the increased usage of streaming video during the coronavirus pandemic. Better still, Disney said that across all its streaming services, which include Hulu and ESPN+, its paid subscriber base surpassed 100 million.
Now what
Disney+ is an absolute home run for the company. It positions Disney as a powerful force within the streaming market, which represents the future -- and, increasingly, the present -- of the entertainment industry.
